This Founder Sold Her Engagement Ring and Drained Her 401k to Start Her Business—Now Rihanna Is an Investor

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Denise Woodard

Denise Woodard isn’t averse to taking risks. After her daughter was diagnosed with severe food allergies, she took the plunge and left a steady paycheck and a nearly decade-long career at Coca-Cola Co. to fill the void for delicious, allergy-friendly snacks in the packaged food industry. With her desire to create safe snacks for her daughter, her experience in consumer packaged goods, and her wide network, there was just one thing standing in her way: capital. Despite Partake Foods gaining traction and securing local placement in Whole Food and Wegman stores, funds were tight early on. “In the beginning, I sold my engagement ring and drained my 401k,” Woodard tells Create & Cultivate. “The possibilities with Partake made those sacrifices worthwhile.”

Fast-forward to 2021 and those possibilities have certainly panned out. Partake Foods is now stocked in nearly 3,000 stores, including retailers such as Target, Whole Foods, and Sprouts, and Woodard recently made headlines as the first Black woman to raise $1 million for a food startup. In fact, more than half of the $7.5 million she’s raised for her startup is from Black investors—including Marcy Venture Partners (the VC fund Jay-Z co-founded), Grammy Award-winning artist H.E.R., and Rihanna—and that’s intentional. “As a Black and Asian woman, it’s important to me that I am bringing profit to Black investors that are going to take the returns and successes and reinvest them into other Black founders to keep that money circulating and growing,” explains Woodard.

Create & Cultivate recently caught up with the founder and CEO to talk about how she bootstrapped her business (and later raised VC funding), why she believes women should talk about money more, and the enduring legacy she wants to leave behind.

You left a nearly decade-long career at Coca-Cola Co. to launch Partake Foods after your daughter was diagnosed with severe food allergies. Take us back to the beginning—what was the lightbulb moment for Partake Foods and what inspired you to launch your business and pursue this path?

Well, actually, it was our sitter Martha (who now owns shares in Partake!) who said to me, “Vivi’s diet is so boring! You should really do something about that.” What she meant, knowing me and my experience in consumer packaged goods (CPG) food and beverage was “DO something about it.” So, I did. I wrecked my kitchen recipe testing the first cookies, but I knew I was on to something when Vivi genuinely loved them.

You recently raised $5 million in Series A funding from investors, including Rihanna, which makes Partake Foods her first investment beyond her personal ventures—no doubt you’ve learned a lot along the way. What are three crucial elements everyone should include in a pitch deck when raising money and why?

The pitch deck is absolutely important, and Partake’s deck has evolved substantially. It’s gotten shorter, if you can believe it, the more we’ve grown. And that’s what I think I would offer to those seeking pitch deck advice. How can you tell your story as impactfully and concisely as possible? Prioritize your why, your market opportunity, your growth projections, and your potential exits. Know your numbers and keep it tight. Can you ride in an elevator and pitch in the time it takes to get from the lobby to the board room? If not, tighten your story.  

More than half of the $7.5 million you’ve raised for your startup is from Black investors, including Marcy Venture Partners (the VC fund Jay-Z co-founded), and Grammy Award-winning artist H.E.R. What advice can you share for entrepreneurs on partnering with the right investors? What do investors need to bring to the table other than just money?

It’s been very important to me, as we’ve grown, to look at a few things when bringing on investors. First, I acknowledge the areas in which I want to lean on advisors. I am always learning, it’s in my DNA. I’m very curious and love studying the stories of businesses that succeed and fail. I also enjoy hearing from other people’s experiences, so having investors around me that bring a variety of expertise and disciplines to the table is critical.

Also, as a Black and Asian woman (my father is Black, my mother is Korean), it’s important to me that I am bringing profit to Black investors that are going to take the returns and successes and reinvest them into other Black founders to keep that money circulating and growing. Black business is not a charity. It’s a solid investment. It’s good business. Working with Black investors who see this and are willing to invest in Black and brown founders (especially Black and brown female founders) now, not just because it’s cool, is a legacy thing for me.

Startups led by Black women receive less than 1% of venture capital funding, and you recently made headlines as the first Black woman to raise $1 million for a packaged food startup. Why do you think there is still so much inequality in the venture capital world, and what advice can you share for WOC entrepreneurs who are currently seeking funding?

Project Diane and Digital Undivided do a lot of good work in this space, and I appreciate that they’re driving meaningful awareness around the details of this. Recently, they released their updated report that noted 93 Black women (of which I am one) and 90 Latinx women are the only ones on record to raise more than $1M publicly. That’s it. I think it’s important to contextualize and continue to reiterate that only 183 Black and brown women of record have achieved this. It’s not because of our ability, it’s because of an opportunity gap. And because of the oppressive systems that have kept us outside the leadership programs, the C-suites, the board rooms, the country clubs. It’s generations of being kept out and then “allowed in” when it’s convenient for white people in power. We are mentored much more than we are hired. 

Non-whites are no longer the minority—that language should be retired. And Black and brown female founders are showing significant business growth. Forbes reported late last year that “majority Black women-owned firms grew 67% from 2007 to 2012, compared to 27% for all women, and 50% from 2014 to 2019, representing the highest growth rate of any female demographic during that time frame.” 

We have buying power and can harness our communities to support each other. I am very grateful to be embraced and publicly supported by many in the Black community. Those who are white and in allyship with us can seek out and buy from us. And those allies in positions of power can invest in us. Again, not because it’s charity, but because it’s a solid investment.

Where do you think is the most important area for a business owner to focus their financial energy and why?

This is a subjective question, but to date, I do as much as I can with “sweat capital.” In the beginning, Partake was self-funded and self-distributed. I didn’t hire a full-time employee until 2020. All of our early dollars went to operations. But now, we have a larger and more balanced budget to ensure that we’re investing and reinvesting in areas that make the most sense for our growth. The safety and quality of our products are top priorities for us because customer enjoyment and trust are most important to us—for the short and long-term, it always comes down to enjoyment and trust. 

What was your first big expense as a business owner and how should small business owners prepare for that now? 

Buying ingredients in bulk took getting used to!

What are your top three largest expenses every month? 

They all tie back to operations. We are consistently buying for production, producing for current and forecasted orders, and shipping to distributors and retailers.

Do you pay yourself, and if so, how did you know what to pay yourself? 

I pay myself a modest salary, yes, but in the beginning, I sold my engagement ring and drained my 401k. The possibilities with Partake made those sacrifices worthwhile. It’s my, and my husband Jeremy’s, hope that we’ll eventually be able to repurchase an engagement ring one day!

Photo: Courtesy of Denise Woodard

Would you recommend other small business owners pay themselves?

This is really a personal decision, but my husband and I live and work in the NYC metro area, and our circumstances mandate a two-income household. 

How did you know you were ready to hire and what advice can you share on preparing for this stage of your business?

For the past few years, I have worked with trusted marketing and PR consultants, but gaining distribution in multiple regional stores (Whole Foods Market and Sprouts) and the possibilities of national distribution that came to fruition (Target, Trader Joes, Kroger), I knew full-time leadership and support was critical to getting everything done well. We now have a full-time team of six and the plan is to grow to 10 to 12 by the end of this year. 

Did you hire an accountant? Who helped you with the financial decisions and setup? 

Yes, we have a consulting accounting team. 

What apps or software are you using for finances? What’s worked and what hasn’t?

We use Quickbooks Online. 

Do you think women should talk about money and business more? Why? 

Yes, the more we share, the more we bring to light the disparity that women, especially Black and brown women, live with every day. Not talking about it keeps things status quo. We need to move away from the status quo.

Do you have a financial mentor? Do you think business owners need one?

I have many trusted investors who have decades of experience building CPG businesses like ours, and I do check in often with them on a variety of questions. I wholly recommend seeking out mentors who have done the doing in your industry! 

What money mistakes have you made and learned from along the way?

One of my most memorable to date was in buying booth space at a large industry trade show a few years ago. I felt pressured to be there because of the other brands that were attending. With the money I spent, especially when you factor in travel expenses, I could have covered more ground hopping on the phone, flying to see individual buyers, or even cold emailing on LinkedIn. It just reiterated to me that this is my journey, and it doesn’t have to look like anyone else’s. 

With that, it’s important to note I wholly believe in real-life events. I’m always so grateful to get to connect with customers face-to-face, and I can’t wait for the world to open back up again so we can get back to offering samples of our products in grocery stores and at local consumer-facing conferences.

What have been some of the hardest money lessons you've learned along the way?

I have to spend money to make money. I know this intellectually, but my scrappiness and upbringing ingrained in me the need to make the absolute most with what I have. 

What is your best piece of financial advice for new entrepreneurs?

Know your numbers. Know your burn rate. Know how much it costs to acquire a customer (if that’s relevant to your business). Stick to your budget. Do everything you can to make the most of every dollar.

MORE ON THE BLOG

8 Women in Venture Capital Share Their Best Fundraising Advice for Female Founders

Statistically, women-led and owned businesses make more money but they’re still woefully underfunded, especially when it comes to venture capital. And, unfortunately, those stats aren’t improving year-over-year. A recent report published by Fortune discovered that companies founded by women received less VC investment in 2020 than in 2019. By the numbers, female-founded companies raised $3.31 billion in VC in 2020, or 2.2% of the year’s total sum, compared to $3.5 billion and 2.6% in 2019.

So, we reached out to eight women in the venture capital industry and asked them to share their best fundraising advice for female founders—and they didn’t hold back. From what you should (and shouldn’t) include in a pitch deck to how to identify the right investors for your business (spoiler alert: they need to bring more than just money to the table), scroll on for their words of wisdom, including insight into how they choose which companies to fund. Needless to say, if you’re an entrepreneur who’s thinking about bringing VC into your business, you’re going to want to heed their advice.

Sarah Kunst, Managing Director, Cleo Capital

“If the terms are clean and the money is green, they are most likely the right investors.”

—Sarah Kunst, Managing Director, Cleo Capital

How do you choose which businesses to fund? What do you look for in a business and/or an entrepreneur? 

I look for founders with an incredible amount of grit, coachability, subject matter expertise, and resilience. I look for businesses in large markets that I'm excited about. If I can find all of those things in a pre-seed startup, I'm likely to invest. 

What are three crucial elements everyone should include in a pitch deck when raising money and why? 

Make sure you explain the problem you're solving (and the solution you're building!), why your team is the right team to solve the problem, and why the market is large enough to build a billion-dollar company. 

What are some of the most common mistakes people make when raising money and how can others avoid these mistakes? 

Mistakes to avoid are bad decks and pitches. There are tons of resources available from simple searches about what a good pitch deck looks like and how to pitch angel and pre-seed investors effectively. Make sure you're putting your best foot forward by preparing both your pitch deck and pitch meeting speech.

What advice can you share for entrepreneurs on partnering with the right investors? 

If the terms are clean and the money is green, they are most likely the right investors. At the earliest stages, most founders won't have a surplus of options so making sure you can live with the investment terms is very important so you can raise money and keep growing your business. Resources like CooleyGO and YC have great examples of boilerplate investment terms. 

What is your #1 piece of financial advice for new entrepreneurs?

Save money on things that don't matter. Fancy offices or expensive business cards likely don't matter, great employees do. 

Jaime Schmidt, Co-Founder, Color

“Fundraising means giving up equity in your business, so the earlier you raise money, ultimately, the more it will cost you.”

—Jaime Schmidt, Co-Founder, Color

How do you choose which businesses to fund? What do you look for in a business and/or an entrepreneur?

My fund Color invests in things people buy, and the places people buy them. This includes personal care, food and beverage, retail, publishers, tech-enabled marketplaces, and e-commerce platforms. 

To make an attractive investment, first and foremost the product must offer a clear solution to a problem, and provide for a timeless need versus a fleeting trend. I look for brands that start out catering to a niche customer base, but that can show a clear path to reaching the masses. I’m excited about founders with an authentic passion for what they are building and who can make a case for why they are the right person to be building it. 

What are three crucial elements everyone should include in a pitch deck when raising money and why?

It’s important to show a clear understanding of the competitive landscape and how your product and brand will add value to the category as a whole. Show who the existing competitors are, those on the rise, and where your brand fits amongst them. The best pitches focus not on how a product is better, but on how it is different. 

Investors will also want to see your distribution strategy. Lay out your plans for where the products will be sold, whether that’s through your website only or across different retail channels. This requires knowing what customer demographics you are targeting, too. I’m personally drawn to brands with an openness to exploring sales channels otherwise overlooked by competitors in their space. For example, when I was building Schmidt’s Naturals, I wanted my products available to the mainstream consumer, where most of my competitors in the naturals space catered to a more niche market.

Show images of the standalone product, plus pictures of it being used. This might sound obvious, but so many decks are lacking bold, high-quality photos. These are especially important in the earliest slides, so the investor has a clear understanding right away of what you are selling. The deck should include colors and design elements of the brand, too. This shows that you care about how your brand is represented and that you understand its unique positioning in the category. Make it pretty!

What are some of the most common mistakes people make when raising money and how can others avoid these mistakes?

The biggest mistake I see is founders raising too early.  Fundraising means giving up equity in your business, so the earlier you raise money, ultimately the more it will cost you.

Media often paints a picture that landing investor money means a brand is positioned for guaranteed success. But this isn’t necessarily true, and founders don’t always spend investor money wisely. I like to encourage founders to bootstrap for as long as possible—this teaches you how to be scrappy and intentional with your spending, which will serve as a valuable skill throughout the growth of your business.

What advice can you share for entrepreneurs on partnering with the right investors?

The right investor will ask smart, relevant questions and show real enthusiasm for you and your brand. Be wary of those you suspect might have different goals for your company. Listen to your gut, and don’t settle for partners you aren’t excited about working with.

Not everyone will get what you’re trying to do, and that’s okay. Be patient, and believe in yourself. I recently tweeted: “10 yrs ago I started a business that, as a VC, I probably wouldn’t have invested in. As a founder, I was all in, but as an outsider, there was good reason to be skeptical. 7 yrs later the company sold for $100M+. The rejection you might see today is no indicator of your potential.”

What is your #1 piece of financial advice for new entrepreneurs?

Allow yourself to be simultaneously frugal and willing to spend by knowing where to cut corners to invest in things that matter most. This takes some of the rigidity out of financial management, while still providing boundaries for responsible spending.

Sydney Sykes, Co-Founder and Co-CEO, BLCK VC

“Look for someone who answers your calls and texts. You should feel comfortable asking them questions and reaching out to them, even if they may not have the answer to your problem.”

—Sydney Sykes, Co-Founder and Co-CEO, BLCK VC

How do you choose which businesses to fund? What do you look for in a business and/or an entrepreneur?

I look for a combination of two things: vision and numbers. If an entrepreneur has an incredible vision for her company and she's been able to motivate others to believe in her but the numbers aren't incredible, I may be willing to invest. On the other hand, if an entrepreneur has incredible numbers, but the vision of what the business will be in the future is still developing I may also be willing to take a chance. Ideally, she has the perfect combination: an incredibly strong vision with economics or growth that is starting to show traction.

What are three crucial elements everyone should include in a pitch deck when raising money and why?

1. Why your problem is important? Why should you/I/the customer/the employees care about this? You should be able to easily convince me about this. It means this is an important issue that needs to be solved and you're the person who understands that best.

2. Any traction. This comes back to the numbers. What indications are there from the market/customers that this will be successful? It could be sales, but it could also be customer conversations, conversion rates, or engagement.

3. Growth projections. How do you predict sales to grow and how many customers will it take to get you there? This helps me (and you) understand if these assumptions are reasonable. It also helps me understand if this is a long or a short run investment? Some companies need a little bit of money to go really far, and others need a lot more. Neither is right or wrong, but I need to know if your expectations for the business align.

What are some of the most common mistakes people make when raising money and how can others avoid these mistakes?

A lack of focus on the target customer. Especially when seeking venture capital investments, entrepreneurs frequently aim to have the largest TAM possibly and therefore try to expand who their target customer is. However, these two things aren't inherently linked. There can be a large total addressable market, but your product needs to appeal to individuals -- and you need to know exactly who those individuals are.

What advice can you share for entrepreneurs on partnering with the right investors?

Look for someone who answers your calls and texts. You should feel comfortable asking them questions and reaching out to them, even if they may not have the answer to your problem. This free communication can set the tone for the relationship.

What is your #1 piece of financial advice for new entrepreneurs?

Make sure the unit economics makes sense. Especially with consumer companies, there needs to be an understanding of how each customer could be profitable. Ultimately, incredible growth is unsustainable without strong unit economics.

Jesse Draper, Founding Partner, Halogen Ventures

“Remember one thing, not all money is good money. This is a long-term relationship. A marriage you cannot get out of. It will be a 10-year partnership. Do your research.”

—Jesse Draper, Founding Partner, Halogen Ventures

How do you choose which businesses to fund? What do you look for in a business and/or an entrepreneur?

We invest in consumer technology so I start there. The three main things I look for in an entrepreneur are: 

1. Founder, founder, founder. Why are you the best person to run this company? Are you going to take it all the way? Are you in it for the quick exit or the 10-year marathon? Do you know your strengths and weaknesses? And mostly, is this someone I want to get into business with?

2. Product. How is your product a unique offering? Is it defensible? If it's a busy space, why is yours the one that will stand out?

3. Traction. This could mean $1 million in revenue, 100,000 users but don't let those numbers dissuade you, many people especially in hardware need to raise capital to get their product to market. If that is the case, show me some research or data that there is a need for this.

What are three crucial elements everyone should include in a pitch deck when raising money and why?

A. Know your market size. Make sure you are going after a billion-dollar market. As a venture capitalist, my business only works if you sell your company for a billion dollars, I have many investors who I need to pay back. If you are going after a $50 million dollar market, my business model doesn't work. I often have to say to founders, go find the bigger market here and come back to me.

B. What problem are you solving? The best businesses are built out of a need. Be clear about what your solution is and why you are building this company. 

C. The ask! I am always perplexed when this isn't in the deck. What are you looking for? $1 million? Advisors? Put the ask in the deck and it's much easier to ASK for an investment, etc.

What are some of the most common mistakes people make when raising money and how can others avoid these mistakes?

Founders who think they have all the answers. I certainly don't have all the answers and I don't believe anyone should ever think they are the smartest person in the room. Whenever I see a  founder who tells me, “This is the only way it will work.” that is a big red flag and I usually run in the opposite direction. The best companies are able to pivot and evolve when needed. It's never a straight line up a mountain, there are ups and downs, and who knows, we may end up in an international pandemic!

What advice can you share for entrepreneurs on partnering with the right investors?

Remember one thing, not all money is good money. This is a long-term relationship. A marriage you cannot get out of. It will be a 10-year partnership. Do your research. Call their other portfolio companies to see that what their work ethic is like, how they partner with founders, are they in the trenches with you, or hands-off. One bad investor can poison the well. You will find the right capital for your company even if it takes a little longer because you have to turn some down. Be diligent and selective. 

What is your #1 piece of financial advice for new entrepreneurs?

Fundraising is a grind. Don't get discouraged by the “no’s.” I often have founders say, “Well, everyone said ‘no.’” And I say, “Who is everyone?” And they respond with, “Well, I talked to eight  investors!” That is NOT a lot. Plan on having 100 meetings because you have to cast a much wider net to find your investors. If you plan on having 100 meetings, you will be pleasantly surprised because it probably won't take 100. Also, ask for more. Get clear on the number you think you need and double it.  It is what I like to call a "misc" category. If your goal is to raise 1 million, go for 2 million instead. It always takes more money and more time than you think. Set yourself up for success. 

Arielle Loren, Founder, 100k Incubator

“Not every business can start small, but the vast majority can. Get a small amount of capital, start testing, collect your data, know your conversion rates, and then think about an investor.”

—Arielle Loren, Founder, 100k Incubator

How do you choose which businesses to fund? What do you look for in a business and/or an entrepreneur?

The most successful and scalable businesses place a heavy focus on their analytics and numbers. They pay attention to their mistakes, learn fast, and are quick to pivot to where they’re seeing traction, whether that’s an increase in their user base, higher revenue, or increased profitability. We love women entrepreneurs who are obsessed with those details, and who aren’t afraid to get creative to reach their growth goals. We don’t expect things to go smoothly, but we do expect for the bumps to be measured.

What are three crucial elements everyone should include in a pitch deck when raising money and why?

Know your conversion rates before going after large amounts of capital. If I give you something small like $10,000, could you take 10% of that ($1,000), invest it in an ad campaign, and turn it into $2,000 in sales? Can you go granular and know how much it costs you in ad spend just to get one customer? Could you measure and see how quickly a first-time customer makes their second purchase? Too many entrepreneurs get caught up in creating a perfectly branded pitch deck when really the decision comes down to proof of concept and real-time data. Gary Vee posted a great quote recently that said, “When you overthink, you slow down and you get passed.” Not every business can start small, but the vast majority can. Get a small amount of capital, start testing, collect your data, know your conversion rates, and then think about an investor (if that’s really what you want to do).

What are some of the most common mistakes people make when raising money and how can others avoid these mistakes?

There are so many entrepreneurs not taking the time to get educated on all of their funding options, and part of that is because angel investors and venture capital have become so popular in the media, that entrepreneurs jump to make that their desired funding vehicle. The vast majority of entrepreneurs do not need venture capital; we teach and help entrepreneurs access 11 other types of funding. When our members first enter the 100K Incubator app, they're asked to take our 50-video boot camp on how to prepare for funding, what their funding options are, and how to use funding to scale to their first $100,000 in annual sales. And for the entrepreneurs who are already earning over $100,000 in annual sales, they still find extreme value in the boot camp, because it breaks down funding and scaling in a way that most of them have never heard. Getting the funding is the easy part, they actually have a lot of options, but learning what drives and scales their business, getting into the data, that’s where their true talent, grit, and creativity is tested as a business owner.

What advice can you share for entrepreneurs on partnering with the right investors?

When partnering with the right investor, it’s more about having an honest conversation about what they expect in terms of a return on their investment, how fast they want it, and how much control they expect to have in the business. Then it’s making sure that you have a skilled lawyer to put those terms into contracts so that there’s little misunderstanding down the road. Most small businesses don’t need investors. What they really need is access to capital, customer acquisition and retention process, a deep understanding of how it works for their own business, and how to scale that into a six and seven-figure in sales with a healthy profit. The TV and social media world have made angel investors and venture capital funding sexy without telling how much stress it puts on founders, and how much it costs financially. At a minimum, make sure your investor is bringing something to the table other than money because if your company is successful, that investor capital you took in exchange for your equity will end up being the most expensive type of capital you’ve ever taken.

What is your #1 piece of financial advice for new entrepreneurs?

Make your move, learn from your mistakes, and trust the process. How much you raise in funding is nowhere near as valuable as what you learn along the way. And while helping women get access to funding is rewarding and an accomplishment in itself, it’s far more exciting to help them use that capital to create real sustainable six-to-seven-figure businesses that change their lives, their families’ lives, and their futures. We love to be the catalyst and support system for more women understanding the complete cycle of entrepreneurship. Getting funding is truly just the first step.

Elizabeth Edwards, Managing Partner, H Venture Partners

“Make a big list and do your research. You should be putting a list of 100 investors together based on stage, sector, and geography focus.”

—Elizabeth Edwards, Managing Partner, H Venture Partners

How do you choose which businesses to fund? What do you look for in a business and/or an entrepreneur?

We're looking for next-generation, iconic consumer brands that we can help scale from $0 or $5 million in revenue to $10 or $50 million in revenue within a handful of years. These are products in your home that you use every day, like your Peloton bike, baby food, or skincare. We look for brands that are fundamental to life, better for human health, and better for the environment, and we like to support underrepresented founders and consumer groups of all kinds. 

In particular, we also like businesses that have one or more of the following in the business model: superior products, scientifically-proven claims, intellectual property, network effect, owned channels, the convergence of media/retail/brand. We tend to lean towards inclusive brands vs. exclusive, and we're particularly strong with omnichannel brands that are going to ultimately scale in retail.

What are three crucial elements everyone should include in a pitch deck when raising money and why?

The pitch uses a combination of stats, calculations, product photos, and charts to tell the following story: 

• We know this consumer inside and out - and they have a big problem that we deeply understand.  

• We have a unique way to solve that problem, sell the solution, or make the solution because we have a lot of domain expertise and credibility in this particular space.  

• This problem represents a huge market, our approach has compelling unit economics, and this brand has clear exit opportunities — strategic and otherwise. If you invest X dollars with this round, we’ll spend the money in these ways to turn it into Y revenue over Z timeframe

What are some of the most common mistakes people make when raising money and how can others avoid these mistakes?

Not using DocSend is a common mistake; it's industry standard in venture capital, and anyone who tells you otherwise is suspect. There was a Twitter controversy over this not long ago, but as Ronald Regan said, "Trust but verify."  There are a lot of thoughtless (or bad) actors out there, who will forward your deck on without thinking - because it's not their business, it's yours. If you're sending your business plan to strangers, DocSend is a good way to track and control it. If you are sending it to a current investor in your company, go ahead and bury them in PDFs of decks and attachments. But there's no reason to do that with strangers.

What advice can you share for entrepreneurs on partnering with the right investors?

Make a big list and do your research. You should be putting a list of 100 investors together based on stage, sector, and geography focus. Crunchbase Pro is relatively cheap, and you can get access to thousands of VCs this way. Then, put together a "Perfect Triumvirate" of three venture investors that complement the weaknesses of your management team; those that can help you with strategy and open their network. It's important to have three deep pockets in any deal. It's tough for the entrepreneur, and the investors, if there's only one set of deep pockets when times get tough — as they invariably do.

What is your #1 piece of financial advice for new entrepreneurs?  

Cash is king. Spend your venture capital money like you don't have any money. Growth hack, test, iterate, and once you figure out a way to get a 7x LTV/CAC, go for it. Raise more money, hire the absolute best talent money can buy and your cap table can bear, and then change the world.

Maria Salamanca, Investor, Unshackled Ventures

“The right investor will be a combination of ‘they get what I am trying to do’ and ‘they push me to think deeper about the problem.’”

—Maria Salamanca, Investor, Unshackled Ventures

How do you choose which businesses to fund? What do you look for in a business and/or an entrepreneur?

We are sector agnostic. We know founders see the world differently than everyone else so we are open to all sectors. Like most VCs, we look to invest in companies that can grow at “venture scale” in large market opportunities.

What are three crucial elements everyone should include in a pitch deck when raising money and why?

Answering the question: what is new about your solution that others haven't tried before (what’s your secret sauce/unique insights), why is this the right team to tackle this, and why is this a massive opportunity?

What are some of the most common mistakes people make when raising money and how can others avoid these mistakes?

Founders don't always do their homework on the competitive landscape, many times only focus on big older companies but the real competition is often from peers only a few steps ahead or behind. 

What advice can you share for entrepreneurs on partnering with the right investors?

The right investor will be a combination of "they get what I am trying to do" and "they push me to think deeper about the problem"

What is your #1 piece of financial advice for new entrepreneurs?

Figure out what is the best form of capital that will help you scale and why (VC, loans, bootstrapping, PE, etc) because this impacts how you think about company building. There are many ways to build a profitable business and venture is not always the right capital to get you there.

Maya Baratz Jordan, CEO and Founding Partner, Founders Factory New York 

“Partner with investors who can help you beyond writing you a check and help in the areas you actually need help in.”

—Maya Baratz Jordan, CEO and Founding Partner, Founders Factory New York

How do you choose which businesses to fund? What do you look for in a business and/or an entrepreneur?

As an early-stage investor, I always weigh the team’s DNA heavily when considering an investment. A business at the startup stage will go through many changes—and will look and be as different two years in as a newborn is from a toddler. It takes a lot to keep a business not only alive but thriving. That's why over 90% of startups fail. The consistent piece is the team. Does the founding team have the unique superpowers required to get their specific company off the ground, along with the experience to allow them to stay the course and attract the best talent and returning customers as they grow? 

The second piece that's important is the market: Is the ultimate market this business is targeting large enough to be investible? For a business to be investible, it needs to generate returns for investors that make it well worth the risk and opportunity cost. There are a lot of great examples of successful businesses that are not investible, but still wonderful businesses. For an investor, the potential reward needs to be multiples higher than the risk—which often means that the company can serve a very large group of people. 

The third piece that's important is the problem that's being solved and how it's being solved; this is the glue that bridges together the first two pieces (i.e., the founders and the market); it's what dictates whether or not the business is truly fitting the needs of the market it is targeting.

What are three crucial elements everyone should include in a pitch deck when raising money and why?

What you put in your pitch deck will depend on the stage of the company. The general areas you'll want to cover include, but aren't limited to, the problem you are solving, how big that problem is (market), and what it is about your company that puts you in a position to win. You'll want to weave them all into a story with a natural arc; it needs to flow in a way that would answer someone's questions as they listen to your pitch. 

If you're an early-stage business with little or no traction to show, you'll want to highlight what it is about your business that will defend it over time and help you win the market over, despite current or future competitors who enter that market. Sometimes that defensibility relies on the experience of the founding team, if relevant. For instance, if you know that the CEO of a wildly successful venture is now starting a new company in a related space, their experience and learnings from running their previous business will likely help them in their new venture. You ideally want to focus on the things that differentiate your company from competitors, specifically zeroing in on the aspects that can't be easily replicated by others and that are necessary for the business to grow and be successful. 

If you're a company with traction that shows you're growing quickly, a so-called hockey stick growth chart can help tell the story of why you are already running a rocket ship. Every company should have its own way to express its ultimate "right to win."

What are some of the most common mistakes people make when raising money and how can others avoid these mistakes?

One of the mistakes I've seen founders make when pitching is speaking but not truly listening. Partnering with investors is a two-way street. The questions and feedback you will get will help guide you to refine your pitch as you go, and perhaps even help your business. And you never know when you may get a "no" from an investor now and perhaps that turns into a "yes" in a later stage of your company. Relationships matter and you can use the fundraising process to grow relationships, even with investors who say no. It's likely that, especially if this is your first time fundraising, most of your pitches will end up with rejections, so you may as well use each interaction as an opportunity to learn. You also want to know your pitch like you know your business; don't memorize it or it will feel unnatural. The best pitches feel like conversations.

What advice can you share for entrepreneurs on partnering with the right investors?

Partner with investors who can help you beyond writing you a check and help in the areas you actually need help in. Try to avoid bringing on partners who either don't know your market or haven't invested in companies that are in the same stage your company is in. You'll want to partner with investors who are empathetic to the journey you're on and can be helpful in the right ways when you need help, whether that means giving you the right advice or making the right introductions. This is why former founders or operators within startups make great angel investors; they understand the challenges of building a business and know the importance of helping a company beyond the capital they put in. You'll also want to partner with investors who generally agree with the path you're going on so they can best support it.

What is your #1 piece of financial advice for new entrepreneurs?

Your biggest financial job will be ensuring there is ultimately more money coming into the company versus out. It sounds simple, but if you have this mandate in mind, you'll be protective of your runway when you need to be and push your company to grow in a long-term, sustainable way so you can ultimately be independently profitable. You don't want to spend money on frivolous, performative things upfront. Think about your runway as fuel; if you're close to running out of it, the company can quickly grind to a halt. Spend money where it's truly needed and understand exactly how every dollar you spend will ultimately get your company to your long-term goals. Most people in successful early-stage companies wear multiple hats and have the urgency/scrappiness to pull things off with limited resources for this reason.

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Start Now—Everything You Should Be Doing to Save as Much Money Possible

Photo: Create & Cultivate

I’m going to humblebrag here; I’m pretty good at saving money. Moreover, I’m not the only one . According to this Fortune article, one in six millennials has at least $100K in savings. So what’s the trick? How do you make it easier to save?

I’ve tried numerous budgeting methods. Everything from detailed budget sheets that outlined where every dollar should go, to analyzing my bank statements each month to see where I can cut down on extra spending. As well-intentioned as these ideas are, I couldn’t stick with them. After a month or two, the task becomes tedious. Eventually, I’d give up and start over with another method, determined that this time, this one would stick.

Ultimately, saving money is not a complicated matter; you simply must spend less than you earn. A “good” budget is one you can maintain. Consistency is key. So how do you remain consistent? Automate your savings.

You need to make saving money as easy and automatic as possible. Otherwise, you’re not going to do it. The premise is straightforward: save a percentage of your income each month by diverting money directly into your savings account. That’s it!

But how much should you save? And how exactly do you do this? Read on to find out.

#1: Calculate Your Expenses

Total how much you spend on necessities — rent, food, utilities, gas/transportation, phone bill, etc. Next, determine how much you spend on optional, “nice-to-have” items or activities — clothing, entertainment, travel, etc.

#2 Find Your Net Monthly Income

This is the total amount of money you bring in after taxes. Subtract your total expenses from your net monthly income. How much is left? What percentage of your monthly income remains? Can you cut anything else to save a little more? Make sure to keep some wiggle room, however, because if you don’t, you will get fed up and won’t stick to the plan.

#3 Save 10–30% of Your Monthly Income

If you can save more, that’s great! If saving 10% feels likes a stretch, start small, even if it’s just $20 a month. However, I would challenge you to look at your expenses and really evaluate if all are necessary.

#4 Automate

Once you have this information figured out, the next step is to automate it.

If you get a monthly paycheck, send the percentage you’re saving directly into your savings account. The rest can be directly deposited into your checking account.

Here’s an example:

Monthly Net Income: $4,500

Monthly Expenses: $3,600

Remaining: $900

Automate. Move:

• $900, or 20% of your monthly net income to be directly deposited into your savings account.

• $3,600, or 80% of your monthly net income to be directly deposited into your checking account.

Now, you can spend what is your checking account (although that doesn’t mean you have to spend the entire amount each month). Also, don’t touch what is in your savings. Do everything you can to leave your savings account alone. Once your savings gets to a specific amount, take a portion and invest that money instead of keeping it in your bank account. That’s it!

A few words of caution: you might be tempted to manually put a specific amount into savings and checking each month instead of automating this task. Don’t do this. Why? Because you’re giving yourself a monthly task to do. And let’s be real, you’re not going to do this consistently. You’ll get busy and forget, or be tempted to put in $400 this month because of XYZ reasons.

Hold yourself accountable and automate this task. If you have to transfer money from your savings back into your checking account for a particular reason one month, that’s fine. However, make that a task you have to do occasionally, not the other way around. Limit the temptations to save less!

I’ve found this method to be the easiest and most straightforward way to save money each month. Experiment if this method works for you. Do you have another plan that works for you? Let me know! Leave a comment below or feel free to reach out to me on Instagram @KellieCockrell. In the meantime, cheers to saving money!

By: Kellie Cockrell

This post was originally published on November 6, 2018, and has since been updated.

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3 Money-Saving Tax Tips for Small Businesses

Photo: Ivan Samkov from Pexels

If you were to ask anyone who just launched a business, start-up, or product in January of 2020 where they’d be in a year, I’m sure most would have had an optimistic answer and replied with an answer along the lines of “hoping my business will take off.” Unfortunately, that was in a time before COVID. Now, an estimated 60% of small businesses have closed in the past year, and the impact the pandemic has had on small businesses is absolutely heartbreaking. I myself launched a small business right before the pandemic hit and completely understand the challenges that most founders face. I am one of the fortunate ones who has been able to maintain my business through an online presence and very dedicated clients. 

Most of my clients are also small business owners who faced the same challenges as me in 2020, and as a tax strategist and owner of Your Tax Coach, it’s my goal to help them navigate PPP loans, EIDL grants and loans, the COVID relief bill, a change of presidential administration, and now, tax season. You’re probably wondering “what is a tax strategist” and “what exactly makes you any different from an accountant?” Simple, my goal is to save business owners like you tens of thousands of dollars on your tax returns, while also relieving your tax-related stress and anxiety through consistent, easy-to-understand communication. 

An accountant will keep records of your finances throughout the year and keep your tax returns compliant. They don’t look for different strategies to apply when filing your taxes and their goal isn’t to save you money, especially if you are a small business owner. For example, did you know that you can claim your cell phone bill, internet, business coaches, courses, conferences, books, magazines, coworking spaces, website design, and even those holiday cards you sent to clients on your tax returns? Some tax strategies also include paying your children and paying yourself rent through your business. Accountants aren’t going to include claims like these because it takes time and documentation to implement. 

Now, this is how I saved my clients over $4.5 million in 2020 on their tax returns, and what I recommend you should do. Here are my top three tips for all small business owners filing their taxes this year.

1. If you profit over $40,000 a year in your business, you should probably be an S Corporation, not a sole proprietorship or LLC. 

It’s easy to assume just because you are a one-woman show running a small business that you don’t necessarily qualify to be considered an S corporation. Although S Corporations require an application and documentation, this is an easy way to save up to $22,000 in taxes each year.

2. Know your numbers, and update your bookkeeping monthly.

Track, track, track! Staying on top of your bookkeeping each month (or, better yet, each week) makes it so much easier to know how much you are profiting. Waiting for your accountant to figure it out a few weeks before taxes are due will not only be a pain but will also likely result in you overpaying in taxes. 

3. Have a tax strategy session with a tax strategist (you’ll be surprised to know that you’ve been overpaying for years). 

Again, a tax strategist is entirely different from your accountant, and meeting with me or another tax strategist, you’ll quickly realize you’ve been overpaying taxes for years. 

Bonus tip: Have a home office? Make sure you’re getting the maximum home office deduction. (There are multiple ways of calculating it.) 

Most small business owners and entrepreneurs don’t have a traditional office space that they’re renting. We all know that you're really working in some small makeshift office, which, technically speaking, is still considered a home office. If there is a desk, computer, and chair present, you got yourself an office. Make sure you know to deduct this when you are filing your taxes. 

Overall, a tax strategist is going to go above and beyond to save you as much as possible in taxes. My biggest recommendation is to invest in yourself and your business and hire someone who is going to ensure that filing your taxes is a fun and easy process, instead of dreading it. Your tax strategy should be seen as a MUST, not a plus. 

"Invest in yourself and your business and hire someone who is going to ensure that filing your taxes is a fun and easy process, instead of dreading it."

—Barbara Schreihan, Founder of Your Tax Coach

About the author: Barbara Schreihan started her career journey working at many different accounting firms, and she quickly noticed that her firms were lacking in customer service and tax strategies. She decided to take a risk of her own and start her own accounting business with the main goal of implementing strategies for clients to reduce the tax impact on themselves and their businesses. She now provides clients her services through tax strategy, tax preparation, and business intensives. Her goal is to customize either of these three services and implement strategies for clients to reduce tax impact for their business. For more information, be sure to follow her on Instagram or visit her website.

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You May Not Have Heard of This Barrier-Breaking Brand, But Beyoncé and Oprah Have

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Jacquelyn Rodgers

Jacquelyn Rodgers knows firsthand that representation matters. “Growing up, my mom painted angels, nativity scenes, and Santas brown, like our family,” explains Rodgers. “She was very intentional about making sure we had images that looked like us.” So naturally, when Rodgers had children of her own, she also wanted her son and daughter to see themselves reflected in a Santa who looked like them, but she soon discovered there was still a void in the market for diverse representations of the Christmas character, even all these years later. After a search for Black Santa-themed holiday wrapping paper left Rodgers empty-handed, she decided to do something about it. Given her past experience in consumer packaged goods and her knack for sales and marketing, she was confident she could address the gap in the market for diverse gift wrap.

And that's exactly what she's been focused on since launching Greentop Gifts in 2016. Today, the brand’s signature character, Clarence Claus, isn’t just on gift wrap, he’s also on pajama sets, “ugly” Christmas sweaters, and ornaments, all of which helped propel Greentop Gifts to recording its highest sales yet in 2020. And being featured in O Magazine as one of Oprah Winfrey’s “Favorite Things” certainly helped the brand’s rapid growth! Despite the pandemic, the business has continued to thrive thanks in part to Rodgers being the recent recipient of small business grants from the Visa and IFundWomen Black Women-Owned Business Grant Program and the Black-Owned Small Business Impact Fund from Beyoncé’s BeyGood and the NAACP. In fact, next month, the brand is set to expand its offerings beyond the holidays to include year-round celebrations, from baby showers and children’s birthdays to graduations, with the goal of making these special occasions more inclusive and diverse.

Scroll on to learn more about how the successful entrepreneur built her barrier-breaking brand, including why she believes having honest conversations about money can make all the difference in the financial success of a company.

Can you tell us a bit about your background and what you were doing professionally before launching Greentop Gifts? 

My background is in sales and marketing. Prior to working on Greentop Gifts full time, I worked for over a decade at two of the top 100 consumer packaged goods companies in the United States. I started the business while working full time and so many of the skills and day-to-day functions of my corporate career have been extremely helpful in starting my own business.

What was the “lightbulb moment” for Greentop Gifts? What inspired you to start your business and pursue this path?  

Growing up, my mom painted angels, nativity scenes, and Santas brown, like our family. She was very intentional about making sure we had images that looked like us. Once I had my son, I wanted him to see images that looked like him, and I quickly realized there was still a void in the market. After searching retail stores in multiple states and not seeing any products like my idea at the time, I knew there was a void in the market and a need for items like we created.

How did you fund Greentop Gifts? What were the challenges and what would you change? Would you recommend that route to other entrepreneurs? 

We self-funded the business in the beginning. We later had a small friends-and-family round to help us with buying inventory early on. In 2020, we won three small business grants that have helped us fund our marketing efforts even more. The challenges with self-funding, for us, was growing slowly. Every penny counts and we had to be very intentional with our spending. If you are able to self-fund or take out business loans for product-based businesses, I would recommend it. Everyone doesn’t need to bring on investors in the beginning. 

Where do you think is the most important area for a business owner to focus their financial energy and why?  

The most important area to focus your financial energy is understanding your basic cost of doing business and your margins. Before launching our business, we researched shipping, freight, sales and usage tax, shipping supplies, etc. Making a list of all your expenses and fees is always a great exercise to focus on before launching your business.

What was your first big expense as a business owner and how should small business owners prepare for that now? 

Our first really big expense was shipping. We are an e-commerce based business and seeing our first shipping bill from our fulfillment company was a shock. 

What are your top three largest expenses every month? 

Our top three expenses every month are marketing, shipping fees, and payroll.  

Do you pay yourself, and if so, how did you know what to pay yourself? 

I don't pay myself a formal salary.  

Photo: Courtesy of Jacquelyn Rodgers

Would you recommend other small business owners pay themselves? 

In the beginning, you should pay yourself enough to survive. Remember, starting a business is one thing, but turning a business into one that has consistent success is going to take sacrifice. Most of your money has to be reinvested in the business to really grow it. The next idea, the next employee, the next office, the next warehouse. You have to eat and pay the bills obviously, but beyond that, you've got to make sure that your business is surviving as well. 

How did you know you were ready to hire and what advice can you share on preparing for this stage of your business? 

I knew we were ready to hire when I couldn’t focus on innovating new products because I was focused on the operations side of the business. The business would not grow if I didn't make time to create new products. When you start your entrepreneurship journey, your business is your baby. I struggled to turn over some aspects of my business, but once I found the right people who were experts in their fields and could help us grow, it made it easier to hand off certain aspects of the business. 

Did you hire an accountant? Who helped you with the financial decisions and set up? 

We did hire an accountant. My husband has a background in finance and was able to manage those decisions in the beginning.  

What apps or software are you using for finances? What has worked and what hasn’t? 

When we first launched we used QuickBooks and recently switched to Bench Accounting. Both have been helpful as we grow and scale our business.

What are some of the tools you use to stay on top of your business financials? What do you recommend for small business owners on a budget?

For small business owners, get rid of bills that are burning money! We had a few subscriptions and services we were not utilizing and those were first to go. 

Do you think women should talk about money and business more? Why?  

Yes! Having conversations about business credit, raising capital, and making smart financial decisions early can make all the difference in the financial success of your company.

Do you have a financial mentor? Do you think business owners need one? 

I don’t currently have a financial mentor, but I have strong business relationships with our accountant and a local bank. My co-founder has an MBA in finance. His background and work experience have been extremely helpful as we grow our business.

What is your best piece of money advice for new entrepreneurs?  

Don't blow your money. It is going to be tempting to think you've made it in the beginning and go out and spend money. Avoid that urge. Think about your business. Plan for your business. You haven't made it just yet.

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Buzzy Wellness Brand Whimsy Official Has Thrived During COVID—This Pivot Was Key

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Whimsy Official

When Jasmine Lee and Victoria McAbee first launched their business, it looked very different than it does today. In 2018, the college friends turned co-founders pooled their cash, tapped their friends and family, and took on a small amount of credit card debt to jump-start a mobile matcha bar. “Picture two 23-year-old girls hauling around a 7x14 foot concession trailer hitched to a black Ram truck,” Lee and McAbee told Create & Cultivate. “It’s so crazy to think that used to be our lives! It’s actually laughable now.”

After just one year, their mobile matcha bar was so successful they finally had the funds to trade in the trailer for the brick-and-mortar café they’d initially envisioned for their enterprise. Then, COVID hit. In the wake of the pandemic, Lee and McAbee, like so many small business owners, made the tough decision to permanently shut their doors and pivot to digital instead. Now, they’ve turned Whimsy Official into a thriving e-commerce brand, offering their signature Ceremonial Grade Matcha and Glow Getter Collagen Blend, as well as their recently launched Halcyon Botanic Serum, which marks the wellness brand’s first foray into skin-care.

Ahead, the co-founders tell Create & Cultivate all about how the burgeoning wellness brand has pivoted its strategy due to COVID, why going DTC has been key to its success, and the pitfalls of investing too much money in social media marketing too soon.

How did you fund Whimsy Official? What were the challenges and what would you change? Would you recommend that route to other entrepreneurs? 

We’ve been bootstrapping since day one and we’re still bootstrapping now! If we were to find the right investor, we may consider giving up equity, but having full control has always been important to us. As we strive to really position our company the way we want it to be seen and understood, it makes all the financial logistics and planning well worth it.

When we first launched our enterprise, our business looked much different than it does now. For context, we launched in 2018 as a mobile matcha bar called Whimsy. Picture this: Two 23-year-old girls hauling around a 7x14 foot concession trailer hitched to a black Ram truck. It’s so crazy to think that used to be our lives! It’s actually laughable now. That initial concept cost us around $20,000 to start up, and the capital was raised between our own two bank accounts, family and friends, and a small amount of credit card debt.

We would absolutely recommend bootstrapping as plan A. Not only does it teach hands-on financial management skills and resourcefulness, but it also ensures that you’re building something scalable. Going too deep at once (especially for first-time entrepreneurs) can be detrimental for a number of reasons (i.e. too much going on without proper systems and infrastructure to manage it, lots of debt without any plan for ROI, etc.).

Do you pay yourselves, and if so, how did you know how much to pay yourselves?

As of right now, we aren’t paying ourselves. We’re only five months into this business! Although we were fortunate to keep a large portion of our customer base from the mobile matcha bar, launching Whimsy Official has been equally as challenging as starting a brand new business. All of our profit is being pumped back into marketing. 

Would you recommend other small business owners pay themselves? 

It absolutely depends on the industry you’re in and what your overhead and sales look like. Also, it depends on how much money you have in your cash reservoir and whether or not you can budget a salary for yourself. For e-commerce brands, your overhead is typically a bit higher and your profit margin is lower as opposed to operating a service-based business where you keep the majority of your profit (if you play your cards right). So all things considered, it’s very contingent on the situation!

Where do you think is the most important area for a business owner to focus their financial energy and why?

Before launching, branding and product development and/or testing. Brand identity is so crucial in order to visually connect with your audience and ensure that your brand experience is unique and compelling. If your brand doesn’t look the part, it can be harder to secure press, certain retailers, and more. Equally as important as branding is having thoughtful, well-researched products (and third-party tested if needed). Bad products never win the race, but great products always stand the test of time.

After launching, I think that hiring a publicist is an excellent investment, especially if you’re looking for longevity of brand exposure. A lot of brands sink money into Facebook and Instagram ads right away, but that can do more harm than good. Ads can definitely make you a quick buck, but each sale isn’t guaranteed to be recurring, nor is it helping to develop your community. Again, playing for longevity is key! 

What was your first big expense as a business owner and how should small business owners prepare for that now?

Rent! We’ve had our own office space since late 2019, but we decided three months before launching Whimsy Official that we wanted to fulfill all of our own products. No labs, no shipping centers, no third-party manufacturers. It’s imperative to us that we maintain full quality control over sourcing, supply chain, fulfillment, and shipping. That way, we can say with certainty that our company is ethical and sustainable and that we know exactly what ingredients are being used in our products.

To be honest, there really is no way to prepare other than to define a clear plan and start saving money. Had we not had money in the bank, we wouldn’t have been able to move into a new office and buy the supplies we needed to build out our own production facility. Of course, loans and investments are both options, but from our experience, that’s what worked!

What are your top three largest expenses every month?

1. PR

2. Rent for our office and facility

3. Product samples/giftings (we send out crazy amounts of free products to retailers, editors/contributors, and influencers each month!) 

How did you know you were ready to hire and what advice can you share on preparing for this stage of your business? 

With our other business, we had several employees and we just weren’t ready for it! In most cases, over-preparation is valuable, but not when it comes to hiring. It’s best to scale and hire as you grow. Currently, we have no employees at Whimsy Official. It’s just us and our PR team who works as an independent contractor.

Photo: Courtesy of Whimsy Official

Did you hire an accountant? Who helped you with the financial decisions and set up? Are there any tools or programs you recommend for bookkeeping?

We have an annual accountant who helps us file our LLC taxes, as well as our personal taxes, but we do our own month-to-month accounting. We’re lucky to have a pretty manageable amount of expenses, so it doesn’t feel terribly overwhelming. We’re a big fan of spreadsheets! Or any Google document for that matter!

The best tool you can have for learning accounting is to watch YouTube videos on bookkeeping. Learning your way around a pro forma (and how to create one for yourself) is a valuable skill. It really makes you feel like you have all your numbers in check!

What apps or software are you using for finances? What’s worked and what hasn’t?

We originally began working with Quickbooks but decided that we much preferred creating our own pro forma via spreadsheets. It felt more flexible, plus it’s free!

What are some of the tools you use to stay on top of your business financials? What do you recommend for small business owners on a budget?

We like to practice planning for the future, but acting in the now. It’s okay to want to dream big and plan for new things, but sometimes, it’s not always the best thing financially. We encourage small business owners to focus on what you do have instead of what you don’t have. This means to really emphasize making your current offerings as best as they can be with the resources you have, then scaling as you grow. Timing is everything, and money should be treated with purpose! 

Do you think women should talk about money and business more? Why? 

Absolutely! Money is—plain and simply put—just a part of life. There’s so much stigma surrounding the topic of money, but money is just a currency that comes and goes. We believe in using our money and knowledge to help other women rather than using it as an elitism tactic to put them down.

Do you have a financial mentor? Do you think business owners need one?

We don’t! But if we could go back to 2018 when we opened the first edition of our business, we totally would have. 

What money mistakes have you made and learned from along the way?

Well, for starters, when we hired those several employees that I mentioned earlier… huge mistake! Enormous mistake! Granted, we had a plan for all of those hires, but unfortunately, it didn’t pan out as we had hoped. Had we been more seasoned business owners, we do believe that that mistake would have avoided altogether.

What have been some of the hardest money lessons you've learned along the way?

1. Money spends quicker than you’d expect, and you always need a budget mapped out before you spend a single cent.

2. You have two choices: to take the risk or to not take the risk. Always take the risk if it feels right in your gut.

What is your best piece of financial advice for new entrepreneurs?

While it's important to be logical with your money, it’s also important to remember that money is no good just sitting around. It’s meant to be circulated. If you have a great idea and the funds to get it started, take the plunge! If you don’t, you may have a lump of cash sitting in the bank, but the “what ifs” may not be worth it. Listen to your intuition and practice staying in tune with it.

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How to Feel Confident in the Prices You Charge

Photo: Color Joy Stock Photography

When I first started my business in 2016, I wanted to do everything for everyone. I was so concerned about growing a solid list of clients that I didn’t even think to take a second and reflect on the prices I was charging. That first year of business, I loved creating “special offers” to entice prospective clients. The point when I realized my special offer frenzy was a real issue was when I decided to offer 10 hours of support for $50! Don’t do the math, it’s as awful as it sounds. As you might have guessed, I ended up with a bunch of clients, but were they ideal clients who actually valued my work and input? Definitely not! It got to the point where I didn’t even care about the work I was doing for my clients. I had burned myself out to a crisp.

Upon realizing I had reached the point of burnout, I reflected on what, if anything, had driven me to this point. I mean, I could truly say I loved my work and what I was doing for a living. So what was the issue then? In reflecting, I realized I had only myself to blame. By offering these extremely low, discounted offers, I was essentially discounting myself of quality of life. And isn’t a better quality of life the reason why many of us decide to start our own businesses anyway? At that moment, I realized I had to flip my mindset around the prices I was charging. I had to do the thought work necessary to recognize my own biases or mental roadblocks and overcome them in order to truly feel confident in charging the prices my work was worth.

There are six mental blocks that I believe keep you from feeling confident in the prices you charge. Hopefully, you’ll see yourself in one, or perhaps even a few of these. But once you recognize what’s holding you back, the next step is to think of ways you can actively flip your mindset around that mental block. I’ll give a few thought starters to help you with the thinking process.

#1: You’re stuck in an employee mindset when you should be the CEO.

Stepping into a business owner mindset begins with stepping into the role of captain. Take ownership! When people ask you, “What do you do?” Answer with, “I’m the founder/CEO/owner of X business.” Don’t minimize what you do. When going about your workday, don’t get so caught up in “doing the work” and “producing,” which is an employee mindset, and think of your workday from the perspective of, “Is what I’m doing right now helping move my business forward?” You are the captain of your ship, and you decide what is worthy of your time, energy, and resources.

#2: You’re stuck in a lack mindset when you should think abundance.

Your ideal client is looking for you. Don’t get stuck in the mindset that there aren’t enough clients or there are already too many people doing what you do. Come to interactions with potential clients with confidence and an abundance mindset. If a client doesn’t decide to sign with you, it wasn’t meant to be. It doesn’t mean the next person you meet with won’t be your next long-term client.

#3: You’re viewing money as a dirty word versus money as a possibility.

Practice cultivating a more positive money story. What do you believe about money? Do you believe the phrase, “I’m bad with money?” If so, you need to start shifting your thoughts around money and practicing looking at it in a different light. Allow yourself to begin to rejoice in the fact that money is all around you. Tell yourself daily: “Money is all around me.” It may sound ridiculous, but believe me, it can really help.

#4: You’re stuck in this belief that, to be an expert, you need to know the answer to every single question.

Now that’s just impossible. Think about it. In the online space, you are learning forever and constantly growing, as it runs fast and changes quickly. It’s impossible to know everything. An expert knows the system and platform well enough to find the must-know information. You just have to know more than your client. Your purpose is to save them the time spent in finding it themselves. Stop placing unachievable standards on yourself. 

#5: You’re “focusing” on too many things.

When first starting out, it’s easy to fall into the trap of being a “jack of all trades,” but it's better to focus on your skillset. Become a master of your expertise and hone in on your superpowers. When business owners are excellent at their specific thing, people are willing to pay for them to stay in their zone of genius. They understand your expertise and skillset costs money. Don’t lead with a long laundry list of bullet points of deliverables. The clients you are supporting are visionaries. They are looking for outcomes. The things that come easy for us don’t come easy for others. Know you are great at that. Your expertise will shine through.

#6: You’re not going into sales calls prepping as if they are already your client.

Before meeting with any potential client, you have to do the necessary research and prep work, otherwise, you’re leaving money on the table. Nobody wants to work with someone who isn’t looking to support them long-term. They want someone who will be there in the long-run to support their business goals. Clients will be impressed you did your research. Show you’re invested in helping them meet their goals. Are you potentially sabotaging yourself from working with more clients because you’re not going into meetings with the proper research under your belt? Just something to consider. A sales call is also the prospective client’s first impression of you, so you want to present yourself as a service that is already delivering on the prices you charge.

I hope by listing out these mental blocks it will help you, as it did me, to overcome whatever is holding you back in feeling confident with the prices you charge. It’s 2021 ladies. Let’s move forward being compensated as such!

Photo: Courtesy of Tasha Booth

About the Author: Tasha Booth is an agency owner, coach, and podcaster. She is the founder and CEO of The Launch Guild, a course launch support and digital marketing implementation agency supporting established coaches and course creators with course and podcast launches, operations and systems management, and content management and repurposing. Her team is over 20 members strong and works together to support their clients in being able to focus back onto their zones of genius.

Additionally, she mentors virtual support pros (VAs and OBMs) who are passionate and ready to grow their businesses while living life on their own term and is the host of the “How She Did That Podcast,” a podcast for virtual assistants, online business managers, and project managers to learn business and tech tips. Tasha is an Air Force wife to her husband Scott, stepmom to Grace and Meredith, and work-from-home dog mom to Stanly and Boomer. In her spare time, she watches true crime tv, sings karaoke, and tends to her organic vegetable garden.

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This Founder Launched Her Jewelry Line With Just $100—Now It’s a Michelle Obama Favorite

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Chari Cuthbert

Last year, ByChari founder Chari Cuthbert made headlines everywhere. After former first lady Michelle Obama donned one of Cuthbert’s designs, a delicate gold chain spelling out “vote,” during her speech at the 2020 Democratic National Convention, everyone from Vanity Fair to Forbes wanted to know more about the designer behind the necklace—and, of course, add it to cart. In just two days, Cuthbert sold a staggering 4,000 pieces, when, on a typical day, she would receive about 200 orders.

But don’t call her an overnight success. Cuthbert has been hustling for years to get to where she is today. In fact, she started ByChari with just $100 in her bank account and didn’t pay herself for the first four years (!) she was in business, instead, reinvesting every dollar she made back into the company. “I started relatively small and would buy enough materials to make exactly what I needed,” the founder tells Create & Cultivate. And it’s safe to say her slow and steady strategy has more than paid off.

Scroll on to learn more about how the successful founder built and scaled her sought-after jewelry brand, including why she urges prospective small business owners to follow her lead and “build a strong infrastructure and scale from there.”

How did you fund ByChari, and would you recommend that route to other entrepreneurs? What advice can you share?

I started ByChari with $100 in my account. I started relatively small and would buy enough materials to make exactly what I needed. For the next year, I would re-invest the profit from my sales back into the company. I wish I would have saved more to start, but then again, I started so small and really wasn’t focused on building a company but more on having a creative outlet. 

How much did you pay yourself in the beginning?

Honestly, very little. One of the first things I did was hire a good CPA to advise me. I paid myself enough to cover my personal expenses and kept as much money in the company as possible. 

Would you recommend other small business owners pay themselves?  

I didn’t pay myself for the first four years I was in business, but it was important for me to take care of myself. I think all business owners should be honest about the time they are investing and commensurate themselves accordingly. 

Where do you think is the most important area for a business owner to focus their financial energy and why?

I think it changes as the company grows. In the beginning, it was inventory, and as the company grew, it was growing a staff and investing in my team. Now we focus on inventory and marketing. 

What was your first big expense as a business owner and how should small business owners prepare for that now? 

My first big expense was digital marketing. I knew it would be a crucial step in growing the business, but it was nerve-wracking making that first payment. Once we had a strategy in place, I made sure that we had ample savings and felt 100% confident in the spend. 

What are your top three largest expenses every month?

Digital marketing, inventory, and employees.

How did you know you were ready to hire and what advice can you share on preparing for this stage of your business? 

When I was working 18-hour days and still not able to accomplish everything I needed to. I knew I would have to watch my overall expenses in order to bring on an employee, but it was so important for my mental and physical well-being to get help. 

Did you hire an accountant? Who helped you with the financial decisions and set up?

When I started the business in Hawaii, I did everything myself. Once I decided to move to L.A. and focus on growing the business, I hired a CPA who helped me with the transfer and California set up. I now work with a financial firm that oversees all of my expenses, budgeting, and spending. Best thing I ever did!

What apps or software are you using for finances? What worked/what didn’t?

I started with QuickBooks from the very beginning. 

What are some of the tools you use to stay on top of your business financials? What do you recommend for small business owners on a budget?

Honestly, QuickBooks. No matter how big or small your company, being organized financially is so important. You can get the essential version for under $30/month. 

Do you think women should talk about money and business more? Why? 

Yes, now more than ever. There are more women run-businesses. We all have the same or if not similar challenges. There is no shame in making mistakes or miscalculating, but not taking the opportunity to ask for help or advice is an even bigger miss. Women need to support each other in any way possible. 

Do you have a financial mentor? Do you think business owners need one? 

I don’t have a financial mentor, that’s where my firm has come in. They have become an extension of my work family, more than a team that just crunches numbers for me. However, having someone to speak with about money is important, even if it’s a parent or close, trusted relative. 

What money mistakes have you made and learned from along the way?

In the beginning, I definitely overspent on materials without having a proper plan.   

What have been some of the hardest money lessons you've learned along the way? 

Managing cash flow. It is so important to constantly be aware of what is coming and going out of your account. 

What is your best piece of financial advice for new entrepreneurs?

Start slow and steady. Build a strong infrastructure and scale from there.

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Vision Boarding Your Future: A Creative Approach to Planning Your Finances

Photo by Andy Art on Unsplash

People who can visualize themselves accomplishing something are more likely to make them happen. This technique, called visualization, is the practice of creating a mental image of a future event or outcome and envisioning the process of how to make it happen. Used correctly, visualization can be a powerful, creative tool to help you accomplish your goals in life – especially your financial goals. 

Visualization works by training the brain. By rehearsing your future behavior and the actions you will take to make your desired goal a reality, you prepare yourself to effectively carry that thought into action. Just like exercise, the more you visualize something, the stronger that vision becomes and the more confident you are to follow through on that action and turn your goals into reality.

Finding success with visualization takes commitment. You need to set aside time every day to visualize yourself hitting your goals if you want them to become a reality, which is why creating a vision board can be such a useful tool to create a consistent visualization practice, and help you (finally!) get your finances in check this year.

Personal financial educator, Tiffany “The Budgetnista” Aliche teamed up Ally to share a creative approach to planning your finances through vision boarding during her workshop at the recent Future You digital festival. An award-winning teacher of financial education, “The Budgetnista” is an Amazon #1 bestselling author of The One Week Budget and the Live Richer Challenge series. She's also a contributing editor for Next Advisor.

Read on for Tiffany’s tips to create your own vision board to help you plan for your financial future. Because it’s not just enough to decide on a goal – you have to take action to fund it. 

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Tips to Create Your Vision Board

Tip #1 – Define Your Goals

It's very difficult to get to a place unless you have a specific destination in mind. If I were to give you a plane ticket and tell you to use it wherever you want it to go, it's going to be very difficult for you to enjoy that plane ticket without choosing a specific destination.

Tip #2 – Your goal should be positively aligned

Steer away from what ‘not’ to do. If you speak in the negative, you see the negative. Instead, speak in the positive and use affirmations to articulate your goal. For example, rather than say ‘don't work so much’ or ‘work less,’ instead say ‘spend more quality time with family and friends.’

Visualization in the form of positive-outcome predicting can have a huge impact on how we shape the course of our lives. A 2016 study shows that this type of thinking drastically reduces unproductive worry-mentality and decreases stress.

Tip #3 – Be Specific

Visions start in your head, then come out through words, and then actions, which is why it’s important to be specific.

For example, let’s say you want to start setting aside money. For what? Where are you going to put it? How much at a time will you save? At what frequency or cadence will you set the money aside to save (weekly, monthly, with each paycheck, etc)? How will it be transferred or put aside? For how long or until when?

Include all of these steps on your vision board to really solidify your goal, so you can then take action towards that vision.

Tip #4 – Find Your Inspiration

Look for things that inspire you – or even people who inspire you – and what will keep you inspired. Look for images that are aligned with your goal, write down affirmations, and again – be specific!

Get creative! Your vision board is a visual representation of who you are creatively, so consider cutting out magazines, using stickers, etc. Use elements and stimulus that will inspire and empower you long term.

Tip #5 – Lay it Out

You might look at your board and realize you want to be able to see the inspiration that is directed towards one area of your life. Consider segmenting your vision board (i.e. a ‘personal’ section and a ‘professional’ section) to keep yourself inspired by the goals you’re working towards in that particular area of your life.

Tip #6 – Keep it in Sight

Place your vision board somewhere that you will see it regularly – your office or workspace, your dining room, or even a hallway or a bathroom. You need to be able to SEE it often. Being reminded of your goals every day helps create the motivation to achieve them.

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Savings Tips to Fund Your Vision

Tip #1 – Emergency Fund

In order to fund your big goals, you must have security and a financial cushion. Your first line of defense is always, always your emergency fund. It's very difficult to leap from an unsafe space. If you're not feeling comfortable and safe, it's going to be very hard for you to level up closer to your goal. Leverage technology, like Ally Bank’s smart savings tools to create an emergency fund. Knowing that you have a safe space to land will help lead you towards your dreams more boldly.

Tip #2 – Charitable Giving

Give your money purpose. I truly believe that giving activates abundance. Charitable giving is doing something for no return for someone else – that's it. So, whatever that looks like for you. Because what you're really saying is I am giving from the overflow of my life, and acknowledging I have overflow is acknowledging that I have excess. And sometimes that's also just giving time and energy!

Tip #3 – Use Your Vision Board

Using the tips above, revisit your vision board often and update it as you (and your goals!) begin to grow. When you are actively working towards your goal – which oftentimes means funding that goal – it makes it seem real and more attainable.

To learn more about Ally, visit ally.com

Ally Bank, Member FDIC

3 Things Millennial Women Can Do Right Now to Set Up an Effective Financial Retirement Plan

Photo: Color Joy Stock

Retirement. It’s usually thought of as a life milestone that we all reach at age 65. But recent generations are less prepared for retirement than their parents. 

Most of the disadvantages facing millennials are circumstantial due to multiple factors, including changes in the economy, rising healthcare costs, student loan debt, and predictable reductions in social security benefits. These are just some of the reasons why retirement might not be as easy as it once was at the age of 65. Some reports have estimated that the new age for retirement is closer to 73 for millennials.

You can forget the traditional ideas of saving minimally and hoping it lasts while relying on your pension. Instead, take matters into your own hands by planning ahead. Finance expert Ashley M. Fox is the founder and CEO at Empify, a social enterprise with the fundamental mission to educate, empower, and modify the mindset of every individual, inspiring them to achieve career, life, and financial success. Ahead, Fox shares her top three tips on how millennial women can effectively set a financial retirement plant.

1. Pick your financial freedom number.

Most people think retirement is an age when, in reality, retirement is a dollar amount. You need to come up with a number that allows you to live the life you want to feel financially free, and the amount you need to feel freedom from attachment, freedom from the obligation of having to go out and make money, and freedom to live life on your terms. 

While it’s great to have an age, the focus needs to be on a dollar amount, because even if you hit a certain age, say 65 or now 70, if you don’t have a specific dollar amount, you will struggle and stress through retirement. Only 40 percent of Americans calculate their retirement needs, so it’s critical to have a destination.

Below are three simple steps to calculate your financial freedom number.

Step 1: Think about how much money you want coming in and have coming in every single month to put you in a position where you are comfortable, and not scared or living in survival mode. Think about what amount of money you need to have to think to yourself, “I'm free, I can think, I have clarity and I can do some of the things I have always dreamt of doing.”

Step 2: Reverse engineer your life. Think about what age you want to start living your dream life with your financial freedom number. Of course, we all want to start living that life today, but you want to think about how much time you will need to have that amount of money coming in. Knowing that the life expectancy of the average person in the U.S. is 80 years old, you are typically in retirement for 20 to 25 years. You want to work backward to see how much money you will need on a monthly basis to live the life you want to live. You have to take your monthly financial freedom number times 12 times the number of years you expect to be in retirement.

Step 3: Create your destination. In order to build a roadmap, you must have a destination. It’s important to determine how much you need and then put in place a clear destination of your retirement path. Once you know your destination, you can create a strategy of the best ways for you to reach your financial freedom number. Everyone’s lifestyle and freedom are unique to them, and it should not be based on the government's standards but on personal goals and standards. 

2. Look at what you already have.

It is easy for us to think about all the things we have not done, or how far behind we may be, but it’s important to know how far we have come and how close we are to what we actually need to live our financial freedom life. Look at your company’s retirement plan. Most people never review their company's retirement plans but continue to contribute to it every month. It’s important to know what it consists of and how much is in it. You can do this by contacting your HR department or your HR system, and download your quarterly statements for your retirement plan—whether it’s a 401k, 403b, TSP, 457, etc. 

You want to know the type of mutual funds and what investments are in the mutual funds. Analyze the performance of the stocks you are investing in. If your employer offers a matching plan. Also, analyze the performance of the stocks you are investing in. If your employer offers a matching plan, and they match up to five percent, definitely take advantage of that and match it. If you put in less, you are leaving free money on the table! When you decide to leave the company then remember to take that money with you. You can always contact HR to find out if your employer matches your investment.

3. Automate your personal savings and investments.

While it’s great to have a retirement plan with your employer, you want to also consider opening up an account yourself. Consider opening up an IRA account, a brokerage, and an online savings account, and be aware of the investments that will go inside those accounts. While retirement may be in the distant future, it’s so important to have a plan. Typically when we make money, we go and pay everyone else first, and that needs to change. 

You should have automatic contributions that are taken out every month in a separate account that is not connected to your checking account. If you have an online account you’re in a position to get a higher interest rate. When you have different buckets of money, they are taxed differently. So when it comes time for you to hit your financial freedom number and retire, you’ll have the funds available to live the life you want to live, on your terms. 

Overall, diversify your money and have automatic investments set up to ensure you live the retirement you deserve.

“Most people think retirement is an age when, in reality, retirement is a dollar amount.”

—Ashley M. Fox, Founder of Empify

About the Expert: Ashley M. Fox is a former Wall Street analyst based in Philadelphia, PA. She graduated Magna Cum Laude from Howard University, receiving her Bachelor of Business Administration in Finance. After helping manage money for millionaires and billionaires during her career on Wall Street, Ashley developed the urge to want to financially empower the women, men, and families that were oftentimes overlooked, and founded Emplify in October 2013. Ashley is a highly-sought-after international speaker who has been featured on empowerment tours, college campuses, and keynote speaking platforms. She was a financial journalist at Black Enterprise Magazine and currently a contributor at Forbes. Ashley has also been featured in various publications which include the Huffington Post, Glamour, and The Street.

About Empify: Founded in 2013 by Ashley M. Fox, Empify has a fundamental mission to educate, empower, and modify the mindset of every individual, inspiring them to achieve career, life, and financial success. There is often a pattern of generational poverty in our communities when instead, there should be a pattern of generational wealth in all communities. Through the creation of life-altering curricula, informative digital content, and interactive events, Empify teaches basic wealth fundamentals to both adults and children by pouring belief into communities through financial education, inspiration, and implementation.

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How Brown Girl Jane's Co-Founder Turned Burnout Into a Six-Figure Wellness Brand Beyoncé Loves

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Tai Beauchamp

Tai Beauchamp knows a thing or two about burnout. Before she became the wellness entrepreneur she is today, she built an impressive résumé in publishing, including stints at Harper’s Bazaar, O, The Oprah Magazine, and Seventeen, where she made history as the publications youngest and first Black beauty director. But there are drawbacks to reaching the top at 25 years old. After just a year at the helm, burnout quickly set in, and she left her post at the magazine with the intention of pursuing a more meaningful and socially impactful path. After launching her own media company and consulting with Fortune 500 companies by the likes of P&G, Walmart, and Estée Lauder, her continued experience with burnout ultimately led her to co-found the CBD-based beauty and wellness brand Brown Girl Jane.

As Brown Girl Jane’s co-founder and chief brand officer, it’s safe to say Beauchamp is driving the meaningful change she always aspired to. In the wake of last year’s protests against police brutality and systemic racism, the brand launched their Brown Girl Swap campaign to encourage consumers to swap five mainstream brands they use daily for Black women-owned brands instead. The campaign caught on, garnering the attention of Halle Berry and sparking a partnership with Birchbox to support Black-owned, women-led brands. And that was just the beginning. In less than a year, the company has experienced six-figure monthly sales, been recognized by Beyoncé’s Black Parade Route, and named Refinery29’s Beauty Innovator of the Year.

Ahead, Brown Girl Jane’s co-founder and chief brand officer share her best financial advice for new entrepreneurs and explains why women should talk about money and business more.

How did you know it was time to strike out on your own and what advice do you have for people who want to take the leap to start their own business but are worried about the financial risk?

Truth be told, I am an accidental entrepreneur. I left my role at Seventeen magazine at 26 years old due to burnout after being named the first Black and the youngest beauty director in the history of the publication when I was 25. It was an amazing but exhausting experience. As a result of burnout, I was intentional about wanting to do something meaningful and socially impactful. I went on to work with my mentor’s family foundation where I immersed myself in youth development and global health. While I was consulting with the foundation, I was asked to become the editor of Vibe Vixen Magazine. Because I was consulting, I was able to negotiate with the foundation and magazine to split my time between the two places. So I worked for the foundation two days a week and the magazine three. This was ultimately the beginning of my journey as an entrepreneur. I began my consulting company that same year. 

Fortunately, I had two clients simultaneously, so that provided me with some financial stability. To that end, I advise new entrepreneurs to leverage where you are to get to where you want to go. Having to stress about finances while starting a business adds to the complex stress of being an entrepreneur. If possible, I encourage people to alleviate as much of the financial stress as possible.

A couple of ways to do this: 

1. Be willing to begin your business not as a side hustle, but as a Twice Hustle. If you are working a full-time job elsewhere, consider starting your business simultaneously. Not only does it allow you to benefit from some financial security, but it also allows you the opportunity to benefit from additional tax benefits if you start a home-based business. 

2. Be intentional about using your savings and earnings to support your business. If you know you intend to start a business, begin saving immediately, the same way you would for a vacation or investment, and set aside resources for the business.

3. Another strategy is to consider partnering with someone. You may be the person who has more time to invest while your partner has more financial resources or vice versa. Obviously, aligning with the best partner also takes time.

How have you approached marketing and messaging on social to resonate with consumers but also sell products and keep the business alive during COVID-19? 

The most important thing in marketing today is authentic storytelling. Consumers and the public are wiser than ever before. They understand and know when brands are “selling” versus “sharing” and genuinely inviting them to either be part of a community or purchase to their benefit. For Brown Girl Jane, we truly center our community, or Tribe as we call them. Our marketing and brand strategy includes powerful storytelling that centers our brand’s ethos around sisterhood, wholeness (our take on wellness), the power of the plant, and empowerment. 

On social media we tell stories, we include our Tribe in those narratives and we engage her. As an example, we host a twice-weekly IG Live show called “You Good, Sis? The Check-in with Brown Girl Jane.” I host this show and speak to women in entertainment, business, beauty, and wellness about how they are, understanding their wholeness practices, how they balance life and work, and why/how CBD is part of their wholeness toolkit. By seamlessly integrating our brand story as well as our collection, our Tribe is able to effortlessly understand how and why BGj should be part of her life. 

During COVID, we’ve been fortunate. Our collection is all about helping our Tribe feel more centered, balanced, healthier, and well-rested. That’s who Brown Girl Jane is. So we’ve been part of the solution during these strange times. Everyone wants to feel less anxious. And because our collection is highly efficacious and supportive of wellness as a whole, we are able to boldly share that with the public. Our testimonials truly speak for themselves.

We also recently announced a partnership with Unilever and Shea Moisture. It’s quite a gift to have such a dynamic partnership. This partnership affords us a unique opportunity to leverage shared reach as well. And last but not least, we’ve been fortunate to have quite a bit of earned media. We’ve become a cult-favorite among editors and influencers! That support is priceless.

What percentage of your budget is currently going toward marketing and are you seeing a return on that investment?

We are grateful to have grown our business organically without the use of paid advertisements and don’t currently have a paid media budget. Because of the extensive love from earned media, people are learning about our brand through storytelling and the stamp-of-approvals given by trusted insiders and industry editors. 

A portion of all Brown Girl Jane sales goes toward a non-profit organization aligned with your mission to better the lives and wellness of Women of Color. Why is giving back such a crucial part of your business model and how do you balance paying it forward with turning a profit?

We knew that giving back was always going to be a central focus of our business model, both in terms of supporting our community through a collective sisterhood and philanthropy. We are true to our word about serving as a support system in more ways than one, and find that businesses thrive when approached from a holistic perspective, versus only focusing on commerce. We give a portion of all sales, so our donations are supported by the purchasing power of our Tribe. It’s a win-win for everyone.

How much did you pay yourself in the beginning and what do you recommend to female founders starting out now? Why? 

We’re bootstrapping and self-funded, and my co-founders and I do not pay ourselves, preferring to reinvest profits back into the business and our amazing talented employees who help drive our business. Although most start-ups are not profitable for three to five years, we’ve been profitable almost immediately, so we are on track to begin paying ourselves within the year.

Where do you think is the most important area for a business owner to focus their financial energy?

Financial planning and bookkeeping! With a rapidly growing business such as ours, it’s easy to let finances take a backseat to driving growth. We spend a lot of time focusing on which opportunities make financial sense, in the short and long term, and making sure we are staying on top of the many banking and reporting guidelines that can overwhelm small business operations.

What was your first big expense as a business owner?

Research and development, cultivation sourcing, product formulation, and inventory. Our collection is expertly-crafted, and we spend a ton of time researching and working with the very best cultivators and scientists when designing our product offerings. Once the products were formulated, we needed to have enough inventory to support the demand, which requires a lot of cash management and planning.  

What are your top three largest expenses every month and were you prepared for those expenses when you first started?

We’re a product-based company, so the top three include inventory, payroll for employees, and insurance/legal/web costs. Each of our founders was an entrepreneur prior to this launch, so we were prepared that these expenses would be necessary to support our rapid growth.

What percentage of business revenue is spent on employee salaries?

Our employee and consultant salaries are equal to about 50% of our business revenue.

How much of the business revenue should new entrepreneurs be saving, if possible, and why?

This is such a personal question that entrepreneurs truly have to answer themselves, but savings should be able to support worst-case scenarios for at least three to six months, if possible. We recognize that this is difficult for new brands and businesses because they typically are not immediately profitable, but savings are extremely important in this increasingly competitive and unpredictable environment.

Did you hire an accountant when you first started out? Who helped you with the financial decisions and set up?

Yes, we have both an accountant/bookkeeper and a CFO. We also integrate services such as Quickbooks that can aggregate your financials into one master headquarters.

What are some of the tools you use to stay on top of your business financials? 

Back-end website integrations, Quickbooks.

What do you wish you’d done differently in your financial journey as a business owner and why?

We assumed that automations would capture all necessary financial analytics and recordings, and we’ve learned that an accurate and comprehensive download of financial health needs a combination of an expert and technological integrations.

Do you think women should talk about money and business more? Why? How will it improve financial outcomes for female founders? 

Absolutely! Men do it, and they do so unapologetically. We should be sharing tips, best practices, salaries… everything! The more we can each pull from the experience and expertise of others in our industries, the better. It should not be taboo to talk about finances. With more information, we’re able to demand more money, advocate for better business opportunities, and begin to lay the foundation for the most successful business possible. It does no one any good to operate in a silo.

Do you have a financial mentor? Do you think business owners need one?

I didn’t for a long time, but I have friends who are seasoned executives and entrepreneurs and they have helped immensely. The biggest hurdle was getting over my own issues with asking questions about money and finance. But after making a lot of mistakes earlier in my career, I became more open about sharing my challenges and asking for advice. I made costly mistakes. Ego is often a deciding factor in asking for financial mentorship, but I think founders will find that other successful women are eager to share advice and want you to succeed. I also have a built-in benefit of having a co-founder, Malaika Jones Kebede, who comes from the financial services industry.

What is the biggest money mistake you made and learned from along the way? 

Early on, it was not only about saving properly but also understanding taxes and bookkeeping.

What is your best piece of financial advice for new entrepreneurs?

Set aside a portion of revenue whenever you can. It’s inevitable that unexpected expenses will arise, from tax bills to a quick need to increase inventory. Being conservative from the beginning will help when you require a quick influx of funds.

What is one financial thing you didn’t do at the beginning of your business that you urge founders to do now and why? 

Establish a clear plan for the financial side of your business in the same way you do for strategy, marketing, or production. It sometimes seems like the most burdensome and least sexy component of running a brand, but trust me, it’s the most important.

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How the Create & Cultivate Team Is Putting Financial Resolutions First in the New Year

Photo by Karolina Grabowska from Pexels

This year didn’t turn out the way many of us had planned. It feels like our 2020 resolutions have been put on hold, while we wrestle with how to reconcile our personal, professional, and financial goals for the new year. The good news is: 2021 is the fresh start we’ve been looking for.

The promise of new beginnings not only lends a much-needed dose of optimism relative to the rhetoric of this past year, but it also helps propel us back into a goal-setting state of mind. A recent survey reveals an estimated 188.9 million adult Americans (74.02% of the population) are determined to learn something new, make a lifestyle change or set a personal goal in an effort to better themselves in 2021, a 15.17% increase from 2019. Furthermore, 33.69% of Americans plan to set a money-related goal. That being said, now is the perfect time to begin planning your financial resolutions for the year ahead, and we’ve partnered with Betterment to help you spend, save, and invest your money better.

2020 has challenged many of us to rethink our values and global impact, particularly when it comes to spending. The way we live, the career we choose, and the people we care about align with our personal values; shouldn’t our investments do the same?

The practice of aligning your investments with the values and social ideals that shape your worldview is known as impact investing, or socially responsible investing (SRI). Betterment defines SRI as “an approach to investing that reduces exposure to companies that are deemed to have a negative social impact—e.g., companies that profit from poor labor standards or environmental devastation—while increasing exposure to companies that are deemed to have a positive social impact—e.g., companies that foster inclusive workplaces or commit to environmentally sustainable practices.” With Betterment's Social Impact Portfolio, you can invest globally in companies that align with what you care about most, without sacrificing portfolio performance.

How we spend and invest our money has the potential to change the world. And while the road to radical change much resembles the stock market – unpredictable, long, and not always forward – the future of our world begins with how you choose to invest for better, starting today.

Read on to hear how three members of the Create & Cultivate team are putting financial resolutions first in the New Year.

I hope to adapt an approach to investing that supports our community and our planet, utilizing one of Betterment’s SRI portfolios that focuses within the realm of Environmental, Social, and Governance (ESG) investing. Betterment's Social Impact Portfolio invests in ETFs that support minority empowerment and gender diversity, and is committed to offering investment funds that do better for our communities and the planet.

In order to pay off some outstanding debt, I plan to limit the amount of "stuff" I accumulate and bring into my home and be more conscious of my spending habits – which includes putting a limit on the amount of nights I order takeout.

My husband and I have a goal of owning our own home in 2022 and are working to pay off our debt in 2021 as well as save up for the down payment. We’ll be sticking to a stricter budget and doing things like making more meals at home versus ordering take out. We also plan to start a new savings account set up for this, specifically, with a monthly goal number to hit for savings.

The above article is sponsored by Betterment. Any links provided to other websites are offered as a matter of convenience and are not intended to imply that Betterment or its authors endorse, sponsor, promote, and/or are affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated otherwise.

How to Heal Your Relationship With Money

Photo: Edmond Dantès from Pexels

Money is emotional. 

Think about how excited you were as a kid when someone gave you money to buy a treat from the ice cream truck or how rich you felt when you started your first job in high school. 

How does money make you feel today? 

If money talk makes your palms sweat, you are not alone. Our relationship with money is incredibly personal and rooted in our upbringing. No matter how you grew up, beliefs about money are ingrained in you.  

Most people struggle with their relationship with money, but when that money feels directly tied to our business success, it can be even more challenging to heal. As an entrepreneur, you not only have to think about your finances, but also what money means for your business.

Entrepreneurs just starting out may fall into two camps when it comes to their relationship with money: The “you gotta spend money to make money” camp, or “I’m afraid of spending and losing what I have” camp. Both are common setbacks for entrepreneurs.

And the thing is, both may be limiting you. It limits growth in your business, limits your wealth, and limits the success—however it means to you—of your business.

When I started my business, I was so nervous about outsourcing because I didn’t want to say goodbye to a chunk of revenue. With my corporate mentality, I was accustomed to making a certain amount of money and keeping a portion of that money. As an entrepreneur, I had to overcome the fear of investing in order to grow my business. 

As a financial and investing coach, I work with powerful corporate women and bad*ss women entrepreneurs. They know how powerful money, as a tool, is and understand that it is vital to their success in business. However, like many of us, they have a natural inclination toward feelings of scarcity around money.

But that doesn’t mean that they (nor you) don’t have the power to shift their mindset to a place of abundance. 

Beyond the numbers in their bank accounts, the women in my program walk away feeling confident when it comes to money and investing.

This is the ultimate goal: Getting to this abundance mindset and confidence level, and it takes real work which goes beyond reading books or listening to speakers. It takes a lot of unpacking. 

Like anything, our relationship with money is directly tied to our behavior. Whatever your money mindset is currently, it is influencing your actions, and those actions lead to both good and bad results.

If you feel like money is running your life, you are struggling to generate more income, or just feel overwhelmed with finances, here are some steps to heal your relationship with money and turn that intimidating, confusing topic into one that empowers you.

1. Explore your limiting beliefs.

A limiting belief is a false belief that you learn by making an incorrect assumption about something in life.

When we are children, we are like human sponges. We absorb everything we see and hear from the adults in our lives. What we learn gets stored in our unconscious mind and our brain recalls the information when needed. The important thing to remember is that your thoughts and beliefs may not be things that YOU believe at all, they’ve just stuck with you into adulthood.

If you see a couple in a Ferrari and think, “Ugh, that’s so flashy and greedy,” ask yourself what makes you think those people are greedy? Do you know them? What if they’re philanthropists that donate a quarter of their income to charity and you’ve falsely labeled them as greedy. Half of the battle with money is becoming aware of your existing beliefs and understanding where they came from. 

Some of the limiting beliefs I see surrounding money are, “I’ll never have enough money,” “I could never afford that,” “Wealthy people are greedy,” or “I will always have debt.” While you may not realize that these thoughts are impacting you, they determine your relationship with money. 

Sit down with a notebook and a pen, grab your beverage of choice, and settle in. Now, think about how you think about money and write those thoughts down. Then, ask yourself where that thought came from. Is it a belief of your own? Was it adopted? Then ask yourself if you believe that thought to be true or false. 

2. Reframe and create new beliefs.

When a piece of information or a thought comes to us, we either disregard, question, or hold onto it as a belief. This step is all about deciding what YOU believe and what beliefs you are ready to let go of.

Find evidence contrary to the false beliefs you have identified. For example, instead of thinking, “I’ll never have $10,000-revenue months in my business,” what if you told yourself, “I’m not yet hitting $10,000 revenue months, but I’m on my way.” Notice the difference in how that feels? Reflect on what you actually believe, and write the reimagined thought down next to the old limiting belief.

Another tip is to come up with supportive money mantras that will help you feel more positive and less stuck when it comes to money. Some examples are, "I am WILDLY worthy of MASSIVE abundance!" or “The more money I make, the more it magically flows into my life!” 

3. Gain clarity and direction. 

Once you really have a chance to sit with your limiting beliefs about money and revisit them, it’s time to take action. Without goals or a direction, you won’t have milestones to celebrate with a dance party or know where you should be directing your energy. 

Let’s say you’re an entrepreneur, and you decide, “I want to have consistent $10,000-revenue months.” That’s a great start, but that goal should be clearer and more specific. Visualize the path you need to take to get to that larger goal. Do you need additional support? If so, what type? Do you need to set aside money for marketing? A mentor? A new offer?

Consider the concrete steps you will need to take to achieve that financial goal along with the costs (including time, mental labor, overhead costs, etc.) associated with each step. 

Getting clarity on your goals will allow for more celebration and less stress. After all, finances are a lot more fun with a celebratory glass of Champagne in hand. 

4. Build your confidence.

You are a bad*ss boss lady who is an industry leader, and you’re a force to be reckoned with. That confidence you bring to sales calls and speaking events should be the same confidence you bring to your finances. It just takes some practice. 

The most important step to healing your relationship with money is letting go and stepping into your confidence when it comes to your business and your money. You have to jump in. It’s time to put your CEO hat on, feel inspired by your new money story, and be fearless in making money decisions. Your business will skyrocket and so will your confidence.

“That confidence you bring to sales calls and speaking events should be the same confidence you bring to your finances.”

—Lisa Seery, Money & Investing Coach

About the Author: Lisa Seery is a money and investing coach for entrepreneurs and high-powered corporate women. She leverages her 15-year career in investment management and her education as a health coach to educate and empower women to become confident investors, own their money story, and heal their relationship with money.

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We Answer All Your Money Questions Like “Where Should I Put My Dollars Now?”

We know first hand when women set their mind to something, they can truly achieve anything. That also applies to confidence around money.  When you have the right money mindset and you experience the role it plays in living your best life, you’ll become a formidable force. 

So it’s time to ditch all fear, obligation, and guilt that block your healthy views on money to achieve the life you’ve always wanted.

Financial educator, Catherine Alford helped us get to that place with her Morning Money Talk presented by Ally at the recent Future of Work digital conference. She shared tips for getting your finances organized at home and supercharging your savings (because we’d all like a little extra financial padding right about now!). She started her business from scratch with a $10 domain name and grew it to six figures so she knows a thing or two about managing money. 

She explained that it’s hard to focus on your job, your side business, or your incredible start up idea if you don’t have your personal finances in order. Additionally, she says the more you save in your personal life, the more freedom you have to pursue your professional goals. Read on to learn about Alford’s three-step savings strategy.

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Whenever I'm having those moments where I really don't feel like saving, I think of my three main reasons to save to remind myself why it’s important. Here they are: 

Reason #1: Personal Freedom

Personal freedom is a massive deal to me. It's why I became an entrepreneur. I like doing what I want, when I want. I like choosing who I work with and what I spend my time on. I like having a job and still being able to pick up my kids from school. When you save your money and you're smart about how you manage it, the more personal freedom you have. Personal freedom with your finances allows you to walk away from jobs and situations that don't serve you and allows you to have fun too.

Reason #2: Leaving a Legacy

How cool would it be if your great-grandkids said, “Because of Grandma Cat or Grandma Sarah or Grandma Melody, all of us went to college debt-free?” What if, because of the lessons you taught and the discipline you established in your family, it changes the way your family behaves, perceives money, and donates?”

Reason #3: Extreme Generosity

Having savings also allows you to be generous with a friend who really needs help at a certain moment. I love the idea of extreme generosity, and I like practicing with micro generous moments. Remember, the more money you make, the more you can give away and make the world a better place.

How Much to Save and Where to Stash It

I like to have a three-step strategy when it comes to saving.

1. Get one month ahead.

2. Establish a solid emergency fund.

3. Set up sinking funds. 

Get into the mindset of believing you're a warrior when it comes to savings and you are going to slash through these goals, however long it takes. If you want personal freedom, to leave a legacy, and to be extremely generous, these steps can help you get there.

Get One Month Ahead

There's a concept called mental load that's been gaining popularity over the past couple of years. It's this idea that women have to do thousands of invisible tasks, things people don't see, things we naturally take on ourselves like emailing our kids teachers or getting a birthday gift for our mother in law. No one assigns us these tasks. It's just that culturally women have taken up all of these tasks, and it is a heavy load on many days.

I don't want money to be one of those things for you, but money takes a lot of time to manage unless you get one month ahead. For me, getting one month ahead is stress-free budgeting, and here's why. When you're one month ahead, you start the month with all the money you need for the month. 

The goal is to use your paychecks from this month to pay your bills next month. And if you're thinking, “That would be nice, but that's not possible,” you have to go back to your mindset. Remember, you are a savings warrior and you absolutely can accomplish that.

For some people, they can get one month ahead today by transferring money from their savings accounts and getting started on the first of next month. For other people, it might take a few months to get there, and that’s okay. What’s important is that you start.

Establish a Solid Emergency Fund

For ten years, I've been telling just about everybody to have a three to six-month emergency fund. And this year has completely changed my view on that because now, I am a fan of having six-plus months of an emergency fund.

If you have high-interest debt, like credit card debt, start with a one-month emergency fund. Then, pay off your high-interest debt as quickly as possible and go back and build your savings to six-plus months after that.

If you have low-interest debt, like a car loan or student loans, build your savings up to six-plus months now before aggressively paying those down.

I like to keep my emergency fund separate from my regular checking accounts and my investment accounts. I keep this money liquid. That means I can access it and have it today if I need it.

Set Up Sinking Funds

Sinking funds are little baby savings accounts for all of the big events and unexpected events that might happen in your life. Three examples are car repairs, holiday savings, and vacations. 

One of the first sinking funds I ever created for myself was when I started my business, and I really wanted to get a MacBook Pro. I was in my 20s at the time, and it was the most money I'd ever saved. I would save a little bit at a time in an online savings account until I reached my goal. 

That was my first experience, and I was hooked because it feels so good to go into a store with cash that you've already saved. There's no guilt, there's no stress, and there's no regret. 

It’s the same thing with vacations. Have you ever taken a vacation that’s completely paid for up front? If so, you're not worried about getting home and looking at your credit card statement. If you save for vacations ahead of time and you have all that extra padding, you're actually able to relax. You can also use sinking funds for things like your kid's birthday party or holiday shopping. 

To make this easy, Ally Bank’s Online Savings Account offers buckets. So, instead of having five or six savings accounts for various sinking funds, now you can consolidate them into one savings account with buckets inside of it named for your savings goals. This helps you to stay organized and in control of your money. 

Bonus Tip: Automate Everything

I know a lot of people aren't fans of automation but for me, automating is everything. I automate my savings and paying my bills because it saves me a lot of brain space. It’s the easiest way to build up a savings account without thinking about it, and that is what I credit the most to being able to build up my emergency fund to what I have today. 

If you've never tried automating or it makes you nervous, just try it for a month or so and see how you feel about it. Start by scheduling a small amount of money to automatically transfer to your savings account after you get paid. I know people worry about too much money being withdrawn from their accounts. However, after many years of automating, I have only had a problem two or three times, and it was quickly fixed with a phone call. 

I hope with this three-step strategy, you can get started on your path towards financial freedom. Not only will having an emergency fund and sinking funds provide a great financial cushion but having them will also give you incredible peace of mind.

To learn more about Ally, visit ally.com

Ally Bank, Member FDIC

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A Donation-With-Purchase Might Not Be the Best Way to Support a Worthy Cause—Here's Why

Photo: Courtesy of Allyn Rose

As a member of the breast cancer community, I’ve noticed an unfortunate trend over the last few years, which is a feeling of unease surrounding what should be our most celebrated time of the year: Breast Cancer Awareness Month.

Being one of the most recognized awareness months certainly has its benefits. Billions of dollars have been raised in the fight against breast cancer, leading it to become one of the most largely funded diseases in the world. But with that popularity, comes an unfortunate dark side surrounding the word “awareness.” In the month of October, one would be hard-pressed to avoid coming across anything less than a sea of pink. We see ribbons and slogans affixed to coffee mugs, tote bags, and sports jerseys.

And while many of these organizations are well-meaning and donate large portions of their product’s proceeds to breast cancer research, others have capitalized on their consumers’ ill-informed purchasing-practices. By using the pink momentum, they raise prices or sell products while donating little to no money toward finding a cure. Much of this is due to the linguistic loophole of the word “awareness” which allows companies to profit without repercussion. These pink profiteers have robbed the month of its true meaning, and those who are most directly affected by breast cancer are calling for change from “awareness” to “action.”

But how do we make that change a reality? It’s unlikely that companies financially benefiting from Breast Cancer Awareness Month are going to change their ways without a significant overhaul of the system or a watchdog organization to hold them accountable. But we, as consumers, can do our due diligence when deciding where our charitable dollars go.

Where do we start?

1. Look for recipient disclosure statements. 

Most large corporations will state on their websites whom their funds benefit. If you don’t see a charitable organization recipient, consider purchasing elsewhere.

2. Look for organizations that donate money to research (the most actionable cause), patient grants, or educational tools. 

Not sure what percentage the particular nonprofit organizations donate towards research or other topics? Check watchdog websites like Guidestar and the Foundation Center. 

3. Look for low “donation caps.”

Pay particular attention to “donation caps.” Some companies may say “25% of the proceeds of this product benefit X organization up to $10,000.” Beware of low caps. 

Following these simple steps will help ensure that your money is going towards worthwhile causes that will help bring us closer to a cure for breast cancer. And let’s not get discouraged!

Breast Cancer Awareness Month is a time for us to encourage those in our lives bravely battling this disease to continue fighting and to honor those who may no longer be with us. It is also a time to learn what we can do to educate ourselves on prevention.

Did you know that close to 50% of women discover their own breast cancer through practices like a self-breast exam? That’s why I’ve made it my mission to teach women how to “know their normal” by performing a monthly exam. Not sure where to start? You’re not alone. The Previvor Foundation can help you learn how! For a quick and easy tutorial, visit our Instagram.

“We, as consumers, can do our due diligence when deciding where our charitable dollars go.”

—Allyn Rose, Women's Health Advocate & Founder of The Previvor Foundation

About the Author: As a 24-year-old Miss America contestant, Allyn Rose made headlines across the globe with her controversial decision to undergo a preventative double mastectomy after losing her mother, grandmother, and great aunt to breast cancer. Allyn's story inspired both celebrities like Angelina Jolie and a new generation of women alike to take charge of their healthcare choices. Determined to encourage other women to know that their scars are beautiful, Allyn boldly became the first woman with a mastectomy to model for Sports Illustrated Swimsuit. She is the founder of The Previvor, a 501(c)(3) non-profit women's health platform which serves as a resource for women undergoing mastectomy, and the creator of the #SelfExamGram, a social media movement that encourages women to perform monthly self-breast exams.

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The Best Money Advice From the Founders of ClassPass, Birchbox, Drybar, and More at the U.S. Bank Women and Wealth Summit

Photo: Smith House Photography

On Thursday, October 8th, we tapped industry-disrupting entrepreneurs and experts for the private U.S. Bank Women and Wealth Summit, a virtual event exclusive to U.S. Bank clients. Inspired by the recently released U.S. Bank Women and Wealth Insights Study, it’s safe to say we didn't hold back on discussing all the important topics around women and wealth, from exploring how women are making their mark on communities through philanthropic giving to diving into the systems that cause the gender wealth gap and how to dismantle them.

The afternoon of thought-provoking conversations was led by noteworthy female founders including Payal Kadakia, the founder and executive chairman of ClassPass; Katia Beauchamp, the co-founder and CEO of Birchbox; Alli Webb, the co-founder of Drybar and Squeeze, and more. Then, Gunjan Kedia, Vice Chair of Wealth Management and Investment Services at U.S. Bank took to the virtual stage with Jaclyn Johnson, founder and CEO of Create & Cultivate to share her story of immigrating to the U.S. to become one of America's Most Powerful Women in Finance, with her division responsible for more than $7 trillion in assets under management or administration. 

Although the event was exclusive to the U.S. Bank audience, don't worry, we wrote down all the most quotable moments for you! Read on for the highlights.

Fireside Chat With U.S. Bank's Gunjan Kedia, Vice Chair of Wealth Management and Investment Services 

Panelist:

Gunjan Kedia | Vice Chair of Wealth Management and Investment Services, U.S. Bank 

Moderator: 

Jaclyn Johnson | CEO & Founder, Create & Cultivate

On being a leader…

“Leadership is fundamentally about everyone but you.”

“I very humbly believe that your title comes with your career, but leadership comes with your point of view.”

On entering a successful company in a high-powered role… 

“First, seek to understand, then seek to change.”

On being empowered by your finances...

“Being on top of your money affairs is so empowering. It gives you so much confidence that it’s worth investing in.”

On paying it forward by working in the finance industry… 

“It is hugely satisfying personally to see someone smile a little bit because you helped them through a difficult decision.”

On managing your money…

“I’m not going to make you believe it’s the most fun thing you do, but I want you to believe it’s not optional.”

On saving, saving, saving…

“‘I save first, and I spend second’ is a mindset that’s very important.”

On getting started… 

“You have to invest in educating yourself.”

“Don’t fear making terrible decisions. Just don’t make huge terrible decisions.”

“Think about what $5 a day does for you 30 years from now if invested wisely.”

On making smart money moves during COVID...

“Right now, interest rates have come down very dramatically so if you have debt you should look at it and see if you can restructure it.”

On maintaining your income… 

“Income continuity is very important to building wealth.”

On cultivating a healthy mindset around money…

“Money is a way to achieve what you want to do with your life.”

“Know it, manage it, don’t fear it, and don’t let it control you either.”

On switching industries to spend more time with her family…

“If anyone thinks that motherhood doesn’t disrupt a career, I’d have to respectfully disagree.”

On giving advice to working moms…

“Don’t give up, stay in the game.”

“Life works out, but you never plan it.”

Keynote Conversation With Actor and Entrepreneur Tracee Ellis Ross

Panelist: Tracee Ellis Ross | Actress, CEO, and Executive Producer 

Moderator: Jaclyn Johnson, Founder and CEO, Create & Cultivate

On becoming an actor..

“Acting gave me access to everything about myself—everything was at play in the world of acting and I felt completely alive and could use all aspects of myself.” 

On how the industry has changed…

“There are so many different ways to discover talent, and to have your gift and talent be seen.”

“There is a democracy in the industry now, that people are able to not just be one thing.” 

On aging in Hollywood…

“I have always wanted to get older. I am always excited about birthdays. You get wiser, more comfortable in your skin. I am grateful at this age to be able to have at my fingertips what I have at my fingertips because I know what it means to me and what I want to do with it.” 

On starting her business, Pattern Beauty…

“It is a task and a half to be a founder and CEO of a company. A successful company is not based on good intentions or even good ideas, it has to be combined with a really good operational process and strategy.” 

“I retain majority ownership, I have full creative control, it is my brand, it is my idea and that means I get to run it the way I want.”

“I believe in shared power. I believe in a table filled with voices, I believe in people bringing their whole selves to work.”

“I believe in a business that doesn’t just make money but also gives back to the community.”

On confidence around money…

“I have always been an outspoken individual but I did not know how to negotiate on my behalf and I did not know how to talk about money.”

“Culturally, women are not taught to talk about money. We have been taught that women are not meant to take up space and not rock the boat. We have also been siloed off from each other particularly as Black and Brown people so we don’t share information with each other and you always think you are alone. And when you think you are alone, it is very scary to show up for yourself because you don’t know; you have nothing to compare it to.”

“Don’t be afraid to ask for support and ask for help. You can be transparent. If you go somewhere to ask for support and they make you feel wobbly, try somebody else.”

“I believe in people being paid fairly and equally for the jobs that they do.”

“I strongly believe in women and WOC fighting for equity—for having a stake in what they create.” 

On sharing the table with other women…

“My confidence has come from the collective energy of other women. They have taught me how to navigate my life—not on my own as this siloed individual, but with this collective spirit and information of all of us.” 

“You want to have people in your circle who are steps ahead of you and steps behind you.”

On advice she’d give her younger self…

“Things take longer than you think they are going to take.”

“Trust the process.”

“The questions are more important than the answers but there is such a sense of fulfillment when you stop looking for that answer and it just appears on your plate.” 

Investing With the Heart: Building Thriving Communities by Combining Social Responsibility With Charitable Giving

Panelists:

Ruby Pediangco | Senior Philanthropic Advisor, U.S. Bank Private Wealth Management

Arian Simone | General Partner & Co-Founder, Fearless Fund

Shiza Shahid | Co-Founder, Our Place

Rebecca Minkoff | Co-Founder & Creative Director, Rebecca Minkoff, and Co-Founder, The Female Founder Collective

Moderator: 

Sacha Strebe | Editorial Director, Create & Cultivate

On being a woman and a philanthropist…

“We are nurturers. We are givers. We multiply anything that is given to a woman.” - Arian Simone

“It’s no longer a luncheon activity. It is an activity of smart women who want to maximize their capital and do good at the same time.” - Rebecca Minkoff

On being inspired by your upbringing…

“My parents instilled in me the concept of sadaqah jariyah, which is this idea that you should do something in your life that will live long after you’re gone.” - Shiza Shahid

“I’ve learned from my work what happens when you help a woman earn a dollar: She invests 80-90% back for her family and her community. It is typically 30-40% for men.” - Shiza Shahid 

On finding new solutions to old problems...

“Anything that puts you out of the status quo gives you a deeper perspective and allows you to be far more creative in solving challenging issues.” - Shiza Shahid

On using life experiences to inspire giving back …

“Working at a nonprofit is very close to my heart, however, I believe that if we’re to solve the most pressing challenges, we need businesses to step up.” - Shiza Shahid 

On providing education, access, and connection to the female founder community…

“I was tired of seeing the same few women being asked to speak on panels and then being asked, ‘What's it like to be a female founder?” as if we were polar bears.” - Rebecca Minkoff

“Founders teach founders best. We've been through it.” - Rebecca Minkoff

On influencing positive change in our communities…

“I'm the answer to my problem.” - Arian Simone 

“Black women are the most founded, yet the least funded.” - Arian Simone

“We are the first Women of Color fund that is built by us, for us.” - Arian Simone

On investing your wealth into your personal values, ideas, and perspectives…

“It's very rare that I've invested in anything that's been owned and operated by a man because I am putting my money where my mouth is.” - Rebecca Minkoff 

“Take the time to do some self-reflection and think, ‘Why am I passionate about education for children?,’ ‘Who influenced me?’ Once you do that reflection, you begin to have a story to tell and it ignites a fire.” - Ruby Pediangco 

“It's that laser focus on what's important that really has flourished all of their endeavors.” - Ruby Pediangco

On finding mentors and providing advice to others…

“It's one thing to give somebody capital. It's another thing to equip them with the skills in order to put that capital to work.” - Arian Simone

“Rather than putting it into Google, you are able to talk to another woman and say, ‘Hey, how did you do this?’ and it doesn’t mean it’s high-to-low, it’s side-by-side.” - Rebecca Minkoff

On ensuring your values align with your philanthropic efforts… 

“Take a sheet of paper, draw a line down in the center, and think of three things that are important to you other than your family. And on the other side, think of charities that you have given to or wherever you’ve invested your money to. Look at that sheet to see if there is alignment between the two.” - Ruby Pediangco

 On encouraging more women entrepreneurs to consider philanthropy…

“It’s absolutely fine if you can’t give today. You can give in the future.” - Ruby Pediangco

On creating connection, impact, and community…

“Women of Color, by nature, bring to the table an element of social impact. By nature, that is just what is happening.” - Arian Simone

On making charitable giving an active part of one’s life…

“I’m not just handing over my money. I am handing over my time.” - Rebecca Minkoff

On finding a thoughtful approach to help build thriving communities…

“There is no trade-off between deep ambition and trying to do the right thing. It’s more and more complimentary.” - Shiza Shahid

“What we have to do, in this moment, is think hard about what we stand for and then be consistent in it. Not just when it’s fashionable.” - Shiza Shahid

“Speak with someone older than you to inform your perspective.” - Ruby Pediangco

Closing the Gender Wealth Gap: A Conversation About the Multibillion-Dollar Disparity

Panelists:

Divya Gugnani | Co-Founder & CEO, Wander Beauty

Katia Beauchamp | Co-Founder & CEO, Birchbox

Alli Webb | Co-Founder, Drybar & Squeeze

Lindsey Boyd | Co-Founder, The Laundress

Moderator: 

Beth Lawlor | President of Private Wealth Management, U.S. Bank 

On experiencing the gender gap early on…

“The minute I got out of college, I told myself, ‘I don’t want to be financially dependent on anyone but myself.’” - Divya Gugnani 

“Early in my career, I was really naive about the gender gap. In my mind, as a young person just starting a career, I thought, ‘But we’re doing the work, we’re closing the gap.’”- Katia Beauchamp

“I wanted to learn and earn that right [of having a voice in the room].” - Katia Beauchamp 

On starting a business despite challenges... 

“I surrounded myself with people who are smarter in ways I’m not and can help bridge that gap for me.” - Alli Webb

“You have to follow what you’re excited about doing.” - Alli Webb

On finding the right market to thrive in...

“There was a major void in the market for proper cleaning products seventeen years ago.” - Lindsey Boyd

“I was excited about getting out of the house, getting away from my kids, and doing something for me, which turned into, ‘Oh my god, there is a massive hole in the marketplace,’ and, ‘Why isn't anyone doing that?’” - Alli Webb

On raising money and learning about finances through experience... 

“We called on people that we knew and believed in us.” - Lindsey Boyd

On investing in female-founded companies…

“We really have to change the entire ecosystem.” - Divya Gugnani

On empowering your employees… 

“Allow people to do what they're passionate about within your organization.” - Lindsey Boyd

On simultaneously being an empowered mother and successful entrepreneur…

“Entrepreneurship prepared me to be a stronger mother and motherhood gave me a perspective that is so needed and useful as an entrepreneur.” - Katia Beauchamp

On working hard to create sustainable growth…

“I was always the person that was working a bit too hard and everyone was like, ‘You’re making us all look bad.’ I expected that from everyone else around me.” -Alli Webb

“A good seven, eight years I worked like a dog. I loved it, but I was exhausted.” - Alli Webb

On empowering other women to overcome financial obstacles…

“We had interns that are now in VP positions.” - Lindsey Boyd

“We’ve done classes for our employees to give them the ability to do more than what they went to school for or what they thought they were able to do.” - Lindsey Boyd 

“Get smart [about money] and share it with everyone.” - Divya Gugnani

On taking control over your financial future…

“It’s about figuring out how to be financially fluent and become financially literate.” -Divya Gugnani

“We shouldn't be ashamed of what money can do.” Katia Beauchamp 

On having money conversations openly...

“Make it an okay thing to talk about at a girl’s dinner.” - Divya Gugnani

“Socializing the conversation around investment needs to happen!” - Divya Gugnani 

On being and finding a mentor…

“[Mentorship] is going the change the landscape on every level.” - Lindsey Boyd

“Men help each other and have each other’s backs, and it’s with money.” - Katia Beauchamp

 On being money-savvy in male-dominated spaces…

“Come to the table as strong as a man.” - Alli Webb

“We need to see more female investors writing checks.” - Divya Gugnani 

“Always come prepared for any review or employee conversation.” - Lindsey Boyd 

The Future Is Female: A Conversation on Building Generational Wealth for Women

Panelists:

Jesse Draper | Founding Partner, Halogen

Sarah Kunst | Managing Director, Cleo Capital 

Payal Kadakia | Founder & Executive Chairman, ClassPass

Moderator: 

Jaclyn Johnson | Founder & CEO, Create & Cultivate 

On empowering women to invest with confidence…

“We need more women creating billion-dollar businesses, then investing back into the ecosystem.” - Jesse Draper

On being an angel investor… 

“If you can buy a Birken, you can angel invest.” - Sarah Kunst 

On taking ownership of your finances...

“Don’t think you can be smarter than the market.” - Sarah Kunst 

“You should only invest in things you understand.” - Jesse Draper

“Money is not something that limits you, but energizes you.” - Payal Kadakia

On bridging the generational wealth gap…

“Investing in women solves all of our problems.” - Jesse Draper

“It’s my job to carry the torch forward to help other women succeed as well.” - Payal Kadakia

“The biggest thing I want to be able to invest in is people and to create wealth for other people.” - Payal Kadakia 

On finding female founders to invest in…

“You already have a network and you already know who you want to invest in. I promise you do.” - Sarah Kunst

“I literally just slide into their DMs, and I say, ‘I really want to learn more about your business.’” - Sarah Kunst 

On taking risks with money…

“It’s about making those trade-offs about what matters and what doesn’t.” - Payal Kadakia

“Women assess risk at a completely different level from men, so you are already derisking your investments, I assure you.” - Jesse Draper

On working toward financial freedom… 

“My thought is always, ‘How do I make more money?’ Not, ‘How do I ask someone to give me more money?’” - Sarah Kunst 

On creating wealth that improves the lives of future generations...

“There are organizations like the Los Angeles Ballet that wouldn't exist without female philanthropists at all, so I see that as a major component of what I do: Give back to my culture and performing arts.” - Payal Kadakia

“Invest in stuff you can’t afford to not see in this world.” - Sarah Kunst 

On growing with the market… 

“Your goal is just to keep money in the market and grow as the world generally grows.” - Sarah Kunst 

On learning from the mistakes of others… 

“I started studying the Vanderbilt House, they were one of the first formative families in America, and they lost all their money. They tried to hold on to it, and that is a risk.” - Jesse Draper

On building wealth with purpose… 

“My main conclusion is that it is a lot harder to oppress people with money.” - Sarah Kunst

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I Paid Off $30K in Credit Card Debt in 6 Months — Here’s How You Can Too

Written by Kiok Kang, Founder, Glowing PR

What is your relationship with money? Do you love to save and budget for the future, or are you all about enjoying that hard-earned money and prepared to go into debt for it? Either way, we need to get better at talking about it if we ever want to be better at managing it, and eventually having more of it. Especially when you consider that globally, women control upwards of $20 trillion in annual consumer spending. But sadly, when it comes to managing money and planning for their financial future, women aren’t as independent as you’d expect. A recent study found that more millennial women cede control to their husbands than women of older generations. Well, our new series, The Money Files is set to change all that by helping women become masters of their own finances so they can manage their money and their future.

Photo: Sarah Shen

Before launching my own company, Glowing PR, I was a corporate employee at a well-known beauty conglomerate. I often felt frustrated by the bureaucracy of a corporate environment, as well as the self-serving motives of other employees (instead of goals that would benefit the company as a whole). Eventually, I decided to take all of my experiences and launch Glowing PR Agency at the end of 2017, and I can honestly say, I haven’t looked back since. I identified a crucial need from brands—a concierge PR agency that genuinely understood their goals and created organic opportunities, secured tangible and relevant coverage, and aligned themselves with the best influencers for their target audiences.  

Our first client, KNC Beauty was just at the beginning of an amazing start. Since then, we’ve focused heavily on indie beauty brands, which heralds back to my own roots in the beauty industry 10 years ago. While the business was thriving, there were costs that were rapidly accruing. For example, I secured an office space in Koreatown that was beautifully designed by Maison Trouvaille but I didn’t forecast a budget properly—launching a business, paying for attorney’s fees, renovating and designing a new office space, and all of the miscellaneous daily business expenses that were keeping the lights on.   

I started my business without enough knowledge of credit card interest rates, cash-flow management, and being able to look at the company’s finances from a bird’s eye view. Before I knew it, I had over $30,000 in debt. This amount was only for the business and didn’t include my personal debt, like my student loans. I immediately felt the weight of this mental and financial burden, like I was drowning with no relief in sight. But I wasn’t alone. The average American now has about $51,900 in personal debt, including mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debt, like personal loans. The US comes in at #6 of the top 10 countries with the most debt (Debt-to-GDP ratio: 127%). 

“Before I knew it, I had over $30,000 in debt... I immediately felt the weight of this mental and financial burden, like I was drowning with no relief in sight. But I wasn’t alone.”

Photo: Sarah Shen

Serendipitously, I spoke on a panel at a women's networking event and met Anna Choung, our wonderful financial advisor and now our accountant. She touched on the launch of her FSMamas (aka Financially Savvy Mamas), a community that empowers women to become more financially independent by educating them on financial management. Afterwards, I decided to dive into my finances and tackle them head-on. It was an extremely humbling experience, to say the least., However, Anna was able to provide comprehensive advice on both business and personal financial decisions that were also tax-efficient.  

The first step of my financial journey was to educate myself on basic concepts—reviewing my financial history to assess the situation, understanding the holistic picture of my debt, as well as strategizing on a clear payment plan to move forward.  Quite frankly (I kick myself because it seems so obvious), the simplest takeaway from all of this was to not accumulate debt, especially high-interest credit card debt, in the first place. I learned that there’s a wise way of allocating money in your bank account without earning extra interest.

With that in mind, I started to pay off my debt with the highest interest rate first. It’s as simple as coming to grips with the financial issues at hand and resolving it as quickly as possible. And don’t be afraid to ask for help—it was eye-opening to sit down with my financial advisor to discuss a debt payment strategy.  

I wish I knew then what I know now—hindsight really is 20/20. Hopefully my story can help someone else, too. So, here are my tips to pay debt off as quickly as possible and grow a healthy business:

1. Understand Financial Concepts 

Get to know some basic financial terms, such as the rate of return and Rule of 72 which uses a simple formula to calculate the number of years it will take for your money or debt to double, given a certain rate of return—it can actually work for or against you. In my case, it worked against me. For example, if my credit card debt was $10,000 with an interest rate of 30% and I made no payments towards the debt, it would then double to $20,0000 in 2.4 years (72/30 =2.4 years).

Not paying off the debt with the highest interest on the credit card was hurting me because it was generating additional interest (rapidly) on top of my original debt. Tallying up the total interest costs and doing the math frightened me into taking action. Ultimately, wouldn’t you rather save those additional charges to grow your business rather than to grow another financial institution’s wealth? 

2. Use Financial Apps and Tools

We’re living in the age of technology and there’s an abundance of incredible apps out there that can assist with debt repayments, budgeting, saving, and investing. Most of these tools are either free or only charge a minimal fee. Loan calculators, such as UnBury.Me or Debt Tracker Pro, can assist you in building and implementing the most suitable debt reduction strategy.  Budgeting tools, such as Mint, show all of your bank account activity in a concise way.

They’ll break everything down in easy-to-read pie charts and graphs to show you where your revenue is coming from and how you’re spending your money. You can then set budgets and financial goals to help you pay off your debt and never, never, never let yourself pay late fees on debt. I recommend setting up automatic minimum payments for your credit cards to avoid any pesky, unnecessary late fees. Don’t be afraid to do some research and find the most suitable fintech tools to use for your business and your personal finances.

“Take a hard look at your business financials and make sure that they’re accurate. Numbers are the basic language of business, and it’s telling you a story.”

Photo: Sarah Shen

3. Manage Your Cash Flow and Get a Great Accountant  

Take a hard look at your business financials and make sure that they’re accurate. Numbers are the basic language of business, and it’s telling you a story. What is your business’s story? Is your business carrying too much debt? Are your clients not paying you in a timely manner? Do you have too many expenses? Is your revenue falling flat? After analyzing your numbers, re-strategize your business plan and reallocate your resources. Tracking your numbers closely and accurately, as well as performing budgeting and forecasting for your business, will lead you to efficient business growth.

Not only will you be able to identify problems and eliminate them from the start, but you’ll be able to manage your business’s liquidity and maintain your bank balances more smoothly. After all, liquidity is what will keep your business afloat.  And if you’re not proficient with bookkeeping and generating accurate business financials, outsource it to a trusted accountant/CPA. I was fortunate enough to have a financial advisor that also has a background in accounting and taxes. Not only is she helping me with debt management, but she’s also my go-to person for my business finances, tax planning, and compliance needs.

4. Tax Planning and Compliance

Understanding your business’s tax needs and being compliant with various tax deadlines (including payroll taxes) will help you avoid unnecessary penalties and will get more money back into your own pocket. This can then enable you to pay off your debt quicker and invest more into your own business. Why pay more than your fair share of taxes?

“No matter what, pay yourself a salary—your time is worthwhile.”

Photo: Sarah Shen

5. Invest in Yourself

As a business owner, not only should you build the proper foundation for your business, but also for your own finances. No matter what, pay yourself a salary—your time is worthwhile. There are statistics that say that many people expect a business to fail, with 50% of businesses actually failing within 3-5 years. You won’t get that investment back if you don’t pay yourself from the start. Get into the habit of investing in your own future and retirement plans as your business grows.

It’s wise to consider and plan for this before having a family, as well. Increase your own wealth with some concrete business projections (i.e., how many clients are necessary? How much revenue is needed?) to reach your goals. Later on, your salary can also be set aside towards a retirement fund to concretely save and invest in your own future. There’s a common misconception that small businesses won’t offer solid retirement options in comparison to big corporations’ 401(k) plans, but there are actually several retirement fund options for small businesses and yourself. If you do more research, you’ll find that there are a lot of plans that are suitable for your business and any unique situations.

6. Education and Quarterly Maintenance

Get familiar with financial terms and set a clear budget for a road map of your business. Identify and invest in the areas that will allow your business to expand. 

Although the journey to becoming debt-free can be different from person-to-person, the most important thing is to take an honest assessment of your situation and face it head-on. Debt is a dirty word that has such an emotional pull. I’ve learned firsthand that debt seems to snowball and you feel completely out of control. The best way to avoid being in as much debt as possible is to understand basic financial concepts, manage cash flow, and avoid costs like buying lunch and shopping for the latest handbag.

Up Next: 10 Money Questions to Ask Yourself (So You Can Afford the Life You Want).

This post was originally published on August 26, 2019, and has since been updated.

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This Founder Started Her Multi-Million-Dollar Business With Just $100 From Her Savings Account

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money. In honor of Black Equal Pay Day, we're shining a spotlight on Black female founders by taking a closer look inside their successful businesses and how they funded them from the ground up.

Photo: Courtesy of Rochelle Graham-Campbell

In 2008, Rochelle Graham-Campbell paved the way as one of the first natural hair vloggers and quickly amassed a huge following on YouTube. Cut to 2020, and she’s turned those followers into dollars with her line of sought-after natural hair care products, Alikay Naturals. Today, the products Graham-Campbell used to make out of her kitchen are sold on the shelves of major retailers by the likes of Target, Walmart, and CVS.

Believe it or not, this successful business started out with just $100, a tried and true hair care remedy, and an unassuming package of paper labels. “My labels were Avery labels that would wash away after a customer used it the first time,” Graham-Campbell, Alikay Naturals co-founder and CEO, tells Create & Cultivate. “While I wanted the prettiest things, I focused more energy on making sure that the quality of the product that I was providing was good enough to keep my customers coming back, and it worked for me.” We’ll say it worked. Alikay Naturals is now sold in 20 countries, including France, Canada, and Bermuda.

Ahead, Graham-Campbell breaks down how she built a multi-million-dollar hair care empire starting with just $100, including hiring her grandparents as her first official employees, and not paying herself a salary for several years.

On bootstrapping the business…

We decided to self-fund because my husband and business partner, Demond, and I wanted to prove our business concepts before we invested more capital into them. With just an initial hundred dollars, would we be able to grow the business organically if we took every dollar earned thereafter and put it into the business?

We were also raised in very financially conservative households (a.k.a. raised in families that didn’t have a lot of money) so we knew how to stretch a dollar and use it wisely. We used this and applied it to our business as well. We have also heard horror stories of businesses taking on investors too early. The investors then came in and caused the brand to be ruined because the initial idea and concept of the founders had been stripped away. Instead of focusing on investors or shareholders, we decided to focus on serving our customers first. 

On self-funding tips for entrepreneurs…

My basic bootstrap tips are to keep your overhead and expenses as low as possible for as long as possible. Some people at the moment, once their business starts to be successful, think they have something to prove by opening a physical location. There are so many companies that have been able to grow into multi-million dollar or even six-figure generating brands that still operate in an apartment or a house.

Also, look into guerrilla marketing; get creative with your marketing dollars in the beginning. We weren’t focused on billboards or magazines, we were focused on how we can get our customers excited by spending as little money as possible. Also, how can we put our time, energy, and effort into creating marketing material that connected to our customers? Which included me doing hair tutorials to spread education and knowledge about our products.

I also taught myself to be in every department in the business, from social media and marketing to customer service and shipping to product development. I did it all, whatever it took because we did not have the capital to hire employees. We waited until the point when hiring was absolutely necessary before we brought employees on and took on a payroll expense. We also kept our beta product as low cost as possible to be able to keep our profit margins healthy so that we can be able to fund cash flow into the business. Eleven years later, we are still a self-funded, bootstrapped, cash-flow operated business. 

On getting back to basics…

I recommend that other entrepreneurs start with what they have and start with where they are. Think about the basic things you need in your business to get to your first sale. Don’t over complicate the process. Think about the basic essentials and use your capital on hand to focus on those things. Once you start to generate revenue in your business, you can scale and you can add the additional resources in areas in departments as needed.

While I think branding is extremely important, I believe that at times people get so heavily focused on the aesthetics portion of their business, which at times, requires a lot of initial capital investment. They forget that the basic foundation of building a company, while all that also does require capital, is usually less expensive. Some examples of the basics that are needed are a website, not a full-functioning website. Maybe starting with a two-page website, enough to, again, convert customers into sales.

Your logo and your brand mood board is another basic investment that I think is worth it creating the beta version of your product or service and getting it launched. Then, I recommend taking customer feedback to pivot and improve. Another area worth investing in upon launching is registering your business and having the proper license is also an initial investment that I think is worth it.

On DIY-ing as much as possible…

When I started my brand Alikay Naturals, I started with simple deli containers that literally were being wholesaled at a restaurant supply store down the street from my apartment. I started with labels that I DIY myself, which is also another recommendation for start-up businesses that are bootstrapping and are starting with limited or lack of funding.

Teach yourself as much as you can, DIY as much as you can in the beginning until you have the capital to be able to hire professionals to make it better. My labels were Avery labels that would wash away after a customer used it the first time. While I wanted the prettiest things, I focused more energy on making sure that the quality of the product that I was providing was good enough to keep my customers coming back and it worked for me. 

On seeking venture capital to scale and grow…

My husband and I have successfully been able to grow our brand for eleven years. We are the sole owners and started with only $100 that we grew into a multi-million dollar global beauty brand. We are looking at the future and scaling our brand rapidly. I believe we are now at the point where we are considering venture capital and the right-fit investor for our business. We’ve previously been approached by investors but declined because it was not the right fit. I think when the right VC comes around we will know it. We want someone that understands our vision for the brand so we do not lose who we are. If you’re reading this and you think that you’re the right investor for us, definitely make sure you reach out. 

On (eventually) putting herself on the payroll…

I actually could not afford to pay myself or my husband for many years. It took probably the first four years before we were officially able to pay ourselves formally on the payroll. Now, I want to be clear, my business has always been profitable, so it wasn’t necessarily that we couldn’t “afford” to pay ourselves, but being a cash-flow operated business, we had to make sure that every dollar that the business made was recycled back into the company. It was hard because it meant that our personal finances took a hit because we could not pull from the business.

However, the way that we looked at it was that our business was a baby, and we could not expect that a baby, although it was working, would be able to sustain us. In the early stages, it was more important for us to make the business stable and financially successful. When we finally put ourselves on payroll, we were the lowest-paid employees in our business for many many years. We paid ourselves just the minimal amount that it took to be able to cover our household expenses. This changed when we had our second child, and we finally gave ourselves the salary that we deserved. To be honest, it was uncomfortable giving ourselves a raise after so many years of barely paying ourselves anything, but it was time.

I would say to the other female founders, please make sure if you can structure some sort of payment for yourself and your business in the early stages, even if it might not be a lot. The sooner that you can pay yourself as the founder, the sooner you will be able to see what you’re working for in real life. It also will give you the motivation to push through the harder days. But remember that your business revenue is not your personal bank account; this is a mistake I see a lot of people make. I talk more about payroll and hiring our first employees in more detail in my book, “90 Days to C.E.O.” 

On prioritizing your marketing budget…

I think the most important area for a business owner to focus their financial energy is into marketing. In order for your business to make money, people have to know about you, they have to want what you’re selling or providing as a service. They have to believe in your brand or your story, and you have to get their attention by being creative.

I think that branding is also important because branding is a part of marketing. You can still brand while your dollars may be limited. It is imperative that you understand how to track your ROI ( return on your investment) by having proper KPIs (key performance indicators) and measures of success in place for every single marketing activity that you do. I discuss this more in my book as well.

On hiring her first “official” employees…

My first big expense in our business was hiring our first employees after my grandparents. My grandparents, Yaya and Mr. Ralstan, were our first employees because they are family and they wanted to see us be successful, and we didn’t have to pay them very much. So our first major expense was hiring official employees that we had on the payroll, that we were now financially responsible for every two weeks, talk about pressure as a start-up business! 

On investing in what’s really important…

The top three largest expenses in the beginning (and now!) are payroll, overhead expenses, and marketing. In the beginning, we were able to keep our marketing costs very low because we gorilla marketed and focused more on social media and free opportunities, but still, we had to have a budget allocated to get the word out about the products.

Photo: Courtesy of Rochelle Graham-Campbell

On saving specifically for tax season…

Save a minimum of 20% to put towards business taxes. I think that’s a mistake that a lot of early entrepreneurs make. They get excited when they start to make money and generate revenue and forget that at the end of the year you’re going to have to call Uncle Sam. Some advice that I can definitely offer is to pay your business taxes quarterly. It makes the blow at the end of the year a lot softer. 

On hiring an accountant (after much trial and error)…

We did not have an accountant when we first started our business. In fact, to be honest, we neglected doing proper accounting for the first couple of years. We were just focused on making products, getting them to our customers on time, keeping them happy, and keeping our business going and growing.

As we began to formalize the business, I taught myself how to do QuickBooks and I was doing our bookkeeping by myself, but I wasn’t very good at it because I really did not have the time as CEO. I was already wearing 50 million hats, which included being the product developer, marketer, shipper, customer service representative, HR, and then bookkeeping?

It was too much so we did hire a small independent accountant who was not the best fit for us. It took us going through three independent accountants before we found our perfect fit, which is a woman-founded and operated firm that we use now. 

On wishing that she’d invested in herself sooner…

I wish that I had paid myself earlier on because my personal finances and credit took a huge hit during this time. I wasn’t paying my student loans for the first couple of years as an entrepreneur because I wasn’t paying myself anything. I was only doing what it took to pay our basic expenses such as rent, food, etc. That was it just the basics. My personal finances took a hit that, honestly, was extremely embarrassing and took some years to rebuild.

On talking about money…

I think that it’s extremely important to talk about money. I must be honest, before I became a successful businesswoman, I thought talking money was kind of weird, awkward, and strange. I also thought that the people who talked about money were actually bragging. I realized that as you become more successful and more financially stable yourself, money talk is extremely important. It honestly gives you more insight and transparency into what others are doing. You are able to share advice and tips to be able to help each other as female founders. Business becomes better. 

On finding a business mentor…

If you’re seeking a mentor, make sure that you are prepared. Don’t seek mentorship when you are not serious about what you are doing because the person you’re seeking out to become your mentor is probably extremely successful with an extremely busy schedule, so you have to already have something established or have a plan. You have to be dedicated and not waste their time.

Also, when doing outreach, find out what you can offer them as well. Don’t be fooled, just because someone is a successful business owner doesn’t mean that they can’t use support in some form. Figure out how you can offer some sort of support to them as well. Even if they decline, at least it looks like you’re not just going with your hands out with nothing to contribute.

If you are able to get an opportunity to work with a mentor make sure you are really listening when they are talking. I think the worst thing is when someone asks you for advice and they just end up talking over you. I just stop talking at that point. I wish I had business mentors when I was starting my journey but I did not. I think that it possibly could’ve helped me to get further in a faster time. But I have no regrets, it made me extremely self-reliant.

On hiring the wrong employees and paying them too much…

The biggest money mistake I made was paying an employee that I hired based on what they thought they deserved and not necessarily based on the credentials and experience that they had. I allowed them to do a smoke and mirrors on me. The résumé and after being hired their work ethic and performance and results did not match the salary that they had demanded. They no longer work for my company. They only lasted a few weeks but it was a necessary lesson that I needed to learn 

On giving financial advice to entrepreneurs…

Always know your numbers and your margins. You are in business to be profitable, not just to be popular, so understand your profit margins. Also, keep your expenses and overhead as low as possible for as long as you possibly can. Even if you have an accountant or CFO, it’s your responsibility to check and monitor your bank account often. 

On her #1 piece of financial advice for founders…

Build a relationship with a business banker. As a small business owner, we open a business bank account, and then we think that is it! We don’t realize that there are so many additional resources that are free and available to us but we will never know if we don’t ask. Now, don’t allow people to talk down to you and bully you into getting additional things that you may not need, but it’s really nice to know you can pick up the phone and call a business banker direct instead of having to always call a one 800 line. 

On setting high financial goals…

Don’t be afraid to set your financial goals for your business. I remember having a meeting with my sales team last year and they were celebrating that we had met a sales goal, but I wasn’t smiling. I had to explain that my goal was a lot higher and that we needed to raise the bar, which we did and this year we have already exceeded that goal after Q2, which is amazing. Had I kept the goal lower, I don’t know if we would’ve pushed as hard as a team to exceed or to meet that goal.

As a founder, don’t be afraid to set your revenue and sales goals high. You are either going to work and meet it, or if do you fall short, at least you weren’t aiming low. One major goal that I have for my business is a high percentage of growth in revenue year after year. This is what makes me feel like my business is being successful I wrote a book that’s 422 pages that discusses my past 11 years as a CEO in “90 Days To C.E.O.” I hope that everyone is able to pick up a copy because the things that I discuss are extremely transparent. 

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"I Was Always Broke Trying to Fund My Business"—Why This Successful Founder Wants You to Save As Much As You Can Before Launch

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

In honor of Black Equal Pay Day, we're shining a spotlight on Black female founders by taking a closer look inside their successful businesses and how they funded them from the ground up.

Kenyata Gant tells me she was “operating on faith” when she bootstrapped her business, Pink Lipps Cosmetics. Turns out the universe was listening because after sending a tweet that she needed an investor, a philanthropic follower gifted her $10,000 to get the company off the ground. “ I had no idea what to spend that money on except that I needed inventory,” she tells Create & Cultivate. “The process was hard because I knew that I would make a lot of mistakes and I did, but I was ready to because I know that mistakes are lessons.”

Once the $10,000 ran out, Gant self-funded the business using money from her full-time corporate job. If she could go back to the beginning, Gant says she would have saved more money before launching the business. “I was always broke trying to fund my business,” she reflects. “I would recommend saving money and building on it because it is the smart thing to do. Being broke is not fun!” 

And as for the kind investor? “We are still friends to this day,” reveals Gant. “He congratulates me from time to time and I still thank him for giving me that chance! “ Read on to learn more money advice from Gant, mistakes made along the way, and why she believes all founders should pay themselves 30%.

On raising money…

Three crucial elements to include when pitching to raise money are:

• Things that set you apart from your competition

• A clear vision of why the world needs your business

• A solid plan to achieve your vision 

On paying herself…

I think business owners should pay themselves 30% or a minimum of $50 a month. I didn’t do that for five years into my business. 

On working full-time while building the brand…

I worked another job for five years before solely going self-employed. I funded my business with the leftovers of my check. My advice would be to save and raise as much money as you can before starting a business. 

On the most important area for business owners to focus their financial energy…

Branding and marketing! I chose those two because you can market literally anything and make millions if marketed the right way and to the right customer.

On her first big expense as a business owner…

My first big expense was inventory but I could handle selling that so then it was hiring a social media manager. I would say prepare for that by learning all that you can so you can run social media yourself until it becomes overwhelming, then hire someone to take it up a notch. 

On the top three largest expenses every month?

My PR agency, my social media manager, and my influencer relationship manager.

On knowing when to hire…

I knew I was ready to hire when I made the decision to scale my brand. Scaling my brand wasn’t just about having the money to do so but the mindset to do so. I thought I could do everything by myself but I knew that my business just wasn’t going to get bigger that way.  I am not an expert at everything and I had to learn that the hard way. The preparation was hard because I had to learn to trust someone else with the operation of my business. 

On saving…

Yes, I am able to save revenue and I do that by telling myself that I must practice good business habits to continue to be successful. I spend money on things that are absolutely needed and will give me a good return. 

On hiring an accountant…

I hired an accountant after being in business for five years. It was the smartest thing I could have done. 

On spending wisely and taking it slow…

For small business owners on a budget, stay on that budget. Spend wisely and make sure you will get a nice return on what you purchase. Take your time with spending and don’t rush the process of becoming successful. Success is loving what you do and doing it every day, so run your business at your pace and wisely.

On what she would do differently…

I wish I had saved more money in the beginning. If I did that then I wouldn’t have needed to use my paycheck from my corporate job to fund the business. 

On the importance of talking about money and business…

I think women should be able to talk about whatever they want to talk about as a business owner because we're just as smart as any man in business and we start/run more businesses, too. We also make good money doing it because of our passionate emotional ways.  

On the money mistakes she’s made and learned from along the way…

Spending my business money on unrelated business things and business things that weren’t needed. I spent too quickly and didn’t put the money back into the business, so that was one of the hardest money lessons I had to learn. There was a time when I couldn’t afford to expand.

On the best piece of money advice for new entrepreneurs…

Hire an expert or educate yourself on how to handle your business money. You can’t go wrong with those two things. 

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13 Successful Business Owners Share the Best Money Books That Changed Their Bottom Line

In this age of information, we have everything we need to start a new business, create a website, or set up a budget right at our fingertips—Google is a powerful tool. But sometimes you need a deep dive into the topic to truly understand the scope of what’s required from every angle—that’s when we turn to books. In our new series, Turning a Page, we ask successful people to share their go-to tomes that helped transform their business. Whether you listen to them or need to physically flip the pages (and write notes or underline the text like us!), there is so much power in self-educating. Ready to turn a page in your career? These books will help take you there.

Photo: Christina Jones Photography

There are plenty of successful founders who don’t have MBAs or were college dropouts. Building a successful company takes grit, hard work, and determination, oh, and a serious love for what you do—and some are saying you don’t even need a college degree anymore. But the good news is we live in the age of information, so when you don’t know something, Google is your best friend. Or we like to go old school and turn to ye old books. It’s one of the easiest ways to self-educate and train yourself in an unknown area. As an entrepreneur, you have to be scrappy and in the early stages there really isn’t a lot of spare cash to go around—a lot of big companies started with little to no money. Until your business is at a point where you can afford to hire staff, you have to take on that work and wear multiple hats.

Money is one area where you need to be especially savvy. Get familiar with a P&L and make sure you’re not racking up debt that you can’t pay back quickly. If this is a sticky point for you, too then don’t stress, we got you. We asked 13 successful business owners to share the best finance books they’ve read and the financial lessons they learned.

Read on to find out and add them to your cart, stat.

Dr. Iris Rubin

Dermatologist and Co-Founder, SEEN Hair Care

The Book: On My Own Two Feet: A Modern Girl’s Guide to Personal Finance by Manisha Thakor and Sharon Kedar

The Financial Lesson: The book is written by my identical twin sister who is also married to my business partner Greg! Sharon is absolutely amazing, as is her book, which has had multiple printings and helped improve the lives of thousands of women. The best advice I got from the book was:

1. Financial freedom allows for powerful life choices. The strength of our finances impacts the jobs we choose and in some cases the relationships we stay in.

2. Save 10% of my money for the long term no matter what. The book talks about how that’s possible on a $30,000 salary and a $300,000 salary. It’s a state of mind that gets you there.

3. Having money in the bank is the ultimate freedom for when life changes—which it always does. And making choices from a position of financial strength is a power play. Own your finances own your life.

Tracey Hummel

Founder, Bee & Kin Smart Handbags

Book:  The $100 Startup by Chris Guillebeau.

The Financial Lesson: I read this book last year around the time I was starting to work on Bee & Kin. This book gives real examples, specifically documenting 50 individual entrepreneurs and how much money each of them started their business with and what they needed along the way to stay up and running.

These examples show that you don’t need a crazy investment to start a business that you are passionate about. All you need is an idea that provides real value to someone else. The two main themes he discusses throughout this book are freedom and value. Freedom is what we're all looking for and value is the way to achieve it.

Jordan Schenck

Co-Founder and CMO, Sunwink

The Books: Secrets of Sand Hill Road by Scott Kupor and Co-Active Leadership by Karen Kimsey-House

The Financial Lesson: Right now we are in the middle of fundraising and growing. The book that really changed everything for us was Secrets of Sand Hill Road by Scott Kupor. While there really is no one-size-fits-all roadmap for fundraising there are critical ways to position and sell yourself that this book helps illuminate. It has helped me and Eliza roadmap our future and strategize our raise/milestones accordingly.

For leadership and how to get through high growth in your business, I absolutely love Co-Active Leadership by Karen Kimsey-House. This was a transformational body of work that allowed me and my co-founder, Eliza, to understand our strengths and how to rely on others during a high-growth moment.

Drea Gunness-Groeschel

Founder and CEO, Beautiac

The Book: An Economist Walks Into A Brothel by Allison Schrager

The Financial Lesson: For anyone looking to make a change in their life, specifically career or as an entrepreneur, should read An Economist Walks Into A Brothel by Allison Schrager. My father, an entrepreneur himself, gave me this book and told me it would be relevant to my life in many ways. He was right! It’s about how we behave with risk and what assessment patterns we tend to fall into. The book shares how to gain financially, when to risk, when to remain in balance and when to push harder, risking more for bigger outcomes through proper mindful thinking about risk behavior.

Often we don’t realize what is truly at stake or what we ultimately want out of a “big risk.” Career defining moments, decisions to start a business, or how to plan for retirement are all important risk-based decisions. Defining goals financially and life balance is a must. I’ve applied this book to many areas of my life, specifically with Beautiac, my new start-up, and how we maneuver the company as we traverse the traction gap into a saturated beauty market. Learning how to properly assess risk is a valuable new tool in my toolkit.

Michele Thomas

Co-Founder, AZIONE

Photo: Tristan Kallas

The Book: Cold Hard Truth by Kevin O’Leary

The Financial Lesson: I’m a big Kevin O’Leary fan. I’d always stumbled upon his articles in Inc. and Entrepreneur. Every time I would read one of them, his philosophy just made sense to me on so many levels. When I wanted to pick up a book last summer, I immediately sought out more of his writing. The Cold Hard Truth details his life and offers a dose of the actual cold hard truth. Kevin highlights numerous methods to run a successful business.

The best advice I gleaned was to know your numbers, how you spend your money, how you use credit, what your margins are, and if you’re spending money to make money. When you first get into business, you’re wearing multiple hats. For my partner and I, we were doing everything from bookkeeping and invoicing clients to payroll. As your company scales, you move responsibilities. However, it’s important not to lose sight of the numbers. Driving this home made me realize I need to painfully stay on top of the numbers.

He also draws a clear distinction when it comes to business, I’m not making friends; I’m making money. Although that sounds harsh, it’s something crucial you must learn early on. You can’t make decisions based on if you might hurt someone’s feelings, or if you really like them outside of work. This is something I learned and continue to remind myself and our executives of. 

Kelly Barker

CEO and Founder, Prep Your Skin

The Book: The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey

The Financial Lesson: I worked in mortgage banking for 15 years in the corporate B2B sector before becoming an entrepreneur. I oversaw large banks and independent mortgage companies, generating in excess of $15 billion in revenue. Throughout this time frame, I learned a deep understanding of each client's business model, sales plan, performance, risk, debt leverage, and cash flow. I took this knowledge and applied it to my business financial plan when creating PREP Your Skin. As a bonus, my husband is a certified financial planner and together we planned for the business years before the idea or the company was started. The company, PREP Your Skin, is self-funded and carries no debt.

For personal finances, I recommend The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey. I've helped several women get their personal finances straightened out with this book, along with my personal tips and experiences. Start with your personal finances and once you have those organized and in a good place, then you can focus on your business financial plan. 

Sarah Paiji

Founder and CEO, Blueland

Book: Lean Startup by Eric Riles

The Financial Lesson: This book really drove home the importance of and framework for fast, iterative product releases. This has enabled us to not only learn and improve continuously but also save money by not over-investing in features before understanding if consumers really value them.

Aly Korchemniy

Founder, Anfisa Skin

Photo: Cory Hultquist

The Book: The Richest Man in Babylon by George S. Clason

The Financial Lesson: My favorite quote from the entire book is: “Advice is one thing that is freely given away, but watch that you take only what is worth having. He who takes advice about his savings from one who is inexperienced in such matters shall pay with his savings for proving the falsity of their opinions.” 

The book was written a long time ago, so some of the language is a bit archaic. He is saying be careful whom you take advice from, take advice from those who have what you want, those who are smart with their own money, because you might end up just like them. In this day and age, the overabundance of information we have at our fingertips is actually incredibly overwhelming. Learning to decipher whom to take advice from is key to building a strong foundation for any business owner as taking advice from the wrong person/source can be financially detrimental to a business.

Amy Voloshin

Founder, Printfresh

The Book: Double Double by Cameron Herald

The Financial Lesson: This book has been one of my go-to’s during start-up mode. I used it in my first business as a way to have a clear vision and to double the business—during that time we grew it to our first million. Now in starting up our stationery and lifestyle brand Printfresh, I’ve gone back to using the system in the book. It gives a great outline of efficient meetings you should have, ways to maximize your time off (and that of your employees for better work/life balance), tracking KPI’s (key performance indicators) and creating a dashboard to share with the team of how we are doing with our metrics.

When I was first starting out I didn’t know what to track or why but taking the time to figure out what moved the needle was incredibly important. It helped us understand how many calls we needed to make to schedule sales appointments, how many sales appointments we needed to hit our sales goals, and more. By gathering data and reviewing it on a weekly basis it’s a lot easier to take some of the emotions out of the equation and focus on the facts and if we are tracking for success.

These days we fill out a dashboard weekly and share it at our weekly meetings and the team can view it from anywhere through Google spreadsheets. I love that I can be sitting on the beach somewhere but still know how things are going at a glance.

Joanna Lau

Founder, Designer and CEO, JEMMA

Photo: Lindsay Brown

The Book: Shoe Dog by Phil Knight

The Financial Lesson: Many business and financial books I’ve read about entrepreneurs follow a common, and I believe misleading storyline. It goes like this: A sharp entrepreneur gets a world-changing idea, develops a clear business strategy, recruits a team of people, and together they rocket to fame and riches. No one ever talks about the climb, the brutal challenges in building something from nothing, and most importantly, the financial stress that comes with it all.

Shoe Dog, Phil Knight’s memoir about creating Nike (though not a pure financial management book), is a refreshingly honest reminder of what the path to business success really looks like. It’s a messy, perilous, and chaotic journey riddled with mistakes, endless struggles, personal and financial sacrifice. He was an accountant by training and skillfully demonstrated how to be scrappy in building a business—he paid only $35 to design the Nike swoosh and plowed every dime made in sales back into growing the business in the most strategic way possible.

This is the real deal and something I practice with Jemma as well. In this day and age, it is easy to think that what defines a successful business is how big you look on the outside and that includes having a really large team, fancy office, and very expensive branding efforts. But in reality, is that a business that will stand the test of time or a business that will run out of cash in five years? As Phil Knight has shown us, it really has to be about being frugal, spending wisely to sustain yourself long enough to outlast everybody else, and truly win.

Courtney Claghorn

Founder, SUGARED + BRONZED

The Book: Entrepreneurial Finance by Steven Rogers

The Financial Lesson: I went to an Amex Open event for female entrepreneurs and attended one of Steven Rogers' (a Northwestern MBA professor) breakout session and I thought he was incredibly intelligent, interesting, and passionate about entrepreneurship. He mentioned that he had written a book and wrote it in a more casual manner (he literally said “I write it in the way in which I speak to you all in person”) and immediately I felt as though I had a lot more to learn from him and purchased the book later that day.

I wasn't ready to raise money at the time (this was in 2014) and learned a lot about debt financing from the book, specifically regarding SBA loans. We've taken 3 SBA loans to date, which really bridged the gap for us between constantly reinvesting our own profits and being ready to raise our first round of funding. The SBA loans helped us fund our build-outs for new store openings and grow faster than just reinvesting our profits would allow. I also learned a lot about raising institutional funding, (which was on a long-horizon) and it was extremely helpful to know the basics of raising money, including everything from the basic lingo to the pros and cons of taking on an equity partner.

The biggest takeaway from Rogers' book was that raising money is most certainly not the only option while you're growing a business, which the buzz in the marketplace often suggests.  SBA loans have allowed us to grow our business and maintain 100% of our equity until we felt as though it was truly time to raise money and find a strategic equity partner to provide advice and expertise, rather than just capital.

Amy Lacey

Founder, Cali'Flour Foods

The Book: Building a Story Brand by Donald Miller

The Financial Lesson: This book was a game-changer for Cali'flour Foods. I truly believe that when we made the conscious decision to make our customers the hero, our business boomed in e-commerce. This book focuses on building relationships that laid a strong foundation for us both internally and externally. We focused on the customer and our ‘why’ and the finances took care of themselves. We did exactly what the book said in regards to clarifying our message so that the customers will listen, and boy did they. Our sales skyrocketed in 2017 and have continued to grow ever since.

Alix Peabody

Founder and CEO, Bev

The Book: Principles by Ray Dalio

The Financial Lesson: This book has helped me the most as an entrepreneur. It’s full of helpful guidelines in building and running your business, and Ray's view on money is particularly helpful. Numbers are important, numbers are information but they are not objective. What is most important is the application of those numbers, the insights behind them, and how (and when) you let them guide you. 

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This story was originally published on August 29, 2019, and has since been updated.